Buying condemned property to Brrrr.

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Buying condemned property to Brrrr.

Jason Watts
Member since 2023 · 3 posts · 0 votes

Ok, first if all, total newbie here that recently set myself a goal of buying my first property before the end of the year.

ok, so I i found a property that is listed as condemned in Lancaster, PA. So far I have no info on why it is condemned, but the listing says it needs lots of work. The listing price is only 30k, and there was a unit sold a few months ago across the street that seems like a very similar comp for 170k. I haven't run any numbers, but based on that info, it seems like it would be hard for it to be a bad deal.

so I guess my questions are how would I go about financing this property, being that its a condemned property? Also, how would I find out why its condemned? Also, what other questions should I i be asking and seeking answers for?

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Jimmy Bostic
Investor · Columbus, OH · Member since 2023 · 73 posts · 82 votes
3y

@Jason Watts I like where your heads at but this isn't something you should dive into as a newbie. If you're eager to find deals you should consider trying to find off market deals or constantly look at the MLS for new listings. I'd advise to start slower/safer. This game is a marathon, not a sprint.

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  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    3y

    You dont finance it , you pay cash .  And if you want this to be your last deal , buy it . Its condemned for a reason . You have no experience in a major rehab , no contacts , you will lose your A$$ . There is a reason why its still up for sale .

    1Reply
  • Nicole Dechow
    Rental Property Investor · Ephrata, PA · Member since 2018 · 37 posts · 17 votes
    3y

    I invest in Lancaster and have seen this house. I would be absolutely shocked if it did not cost at least $100k to renovate this property. Then with closing and carrying costs and how long that rehab would take with permits and contractors, I do not think this is a good deal.

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Jason Watts

    As another poster mentioned. You first would need to buy it with cash. To get financing you would need a general contractor’s quote as well

    Even with that information financing will be difficult to get since you have no experience

    Maybe look to find a local investor to see if there is an opportunity in the deal - and if not it’s also good to learn why NOT to buy properties

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  • Jimmy Bostic
    Investor · Columbus, OH · Member since 2023 · 73 posts · 82 votes
    3y

    @Jason Watts I like where your heads at but this isn't something you should dive into as a newbie. If you're eager to find deals you should consider trying to find off market deals or constantly look at the MLS for new listings. I'd advise to start slower/safer. This game is a marathon, not a sprint.

    2Reply
  • Jason Watts
    OP
    Member since 2023 · 3 posts · 0 votes
    3y

    Thanks everyone, I appreciate the feed back, and I'll take your advice and leave this alone. I do have some construction experience, but mainly DIY and not professional.

    For my own curiosity and for education's sake, this listing said that there was a 15 year deed restriction on the property. What does that mean?

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  • Alex Deacon
    Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
    3y

    @Jason Watts I have purchased many condemned properties in the city of Pittsburgh. Just because it has a condemned sticker on the front door does not mean it needs torn down. You need to contact the borough or city. Now with that being said there are other posts that say do not buy it and that they know the property well. You may want to heed some of their advice also. Do your due diligence and try to get hold of the current owner and get inside if possible, to assess the condition. 

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  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    3y
    Quote from @Jason Watts:

    Thanks everyone, I appreciate the feed back, and I'll take your advice and leave this alone. I do have some construction experience, but mainly DIY and not professional.

    For my own curiosity and for education's sake, this listing said that there was a 15 year deed restriction on the property. What does that mean?


    Hmm. Is this house part of an HOA? A deed restrictions limits what you can do with the property once you own it. It sounds like the purpose of this deed restriction is to keep you from selling the property within the next fifteen years. It might be something else. You need to ask the seller exactly what this means.

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