This $17k house won't Sell! What's wrong with it!

[Tasha Mckoy]

Hello BP,

I'm looking to start investing out of my state and came across this REO house in NC. It's been on the market forever and the price keeps going down. I don't know what's wrong with it. Based on the pictures, there is mold in the basement. The rest of the house seems doesn't seem to be too bad. What is wrong with this house and why hasn't anyone jumped on it? The area seems to be okay. I've checked the local paper in the town and it seems to be doing okay. I also searched the address to see if a murder or something crazy like that happened in the house. Came up with nothing! Was there a meth lab? I just don't know. I'm just tempted to purchase it because it's so low. It's a five bedroom, two bath SFH with about 2400 sq. ft. Might it be a good buy and hold? The rents in the area for this size of a house would be about $850 a month. Your thoughts?

[Jon Holdman]

You should evaluate it just like any other.  The key is to see with your own eyes.  Like others have pointed out the pictures could be telling a completely different story than you will see on the ground.  You want to look at the property, the neighborhood, and the entire area.  You want to meet the people you might be hiring.  You are effectively going to be handing these people your checkbook, so you want to get to know them and the area well enough to be sure its safe to trust them with your money.