Akron, Ohio property; wholesale, flip or rent?

Question

What would you do with this house?

My relatives inherited a house and are unsure what to do with it.

Address: 1000 Neptune Ave S., Akron, OH 44301.

It needs new plumbing (cast iron), electrical, kitchen, BA, windows, doors, refinish floors, appliances, possible roof and remediation of a bunch of health inspector code violations. It does have newer siding, a new front porch and roof on garage is new.

Rentometer rents are $525-$600/mo. for 2BR in the neighborhood.

As is, it would probably sell for $8,000-$15,000. Rehabbed, I'm just guessing, it would sell for $20,000-$35,000.

Michael Noto · Answer

If you do not know the area, and do not know the viability of it as a rehab/flip or rehab/hold then I would just sell it.  Do you really want to take all the time necessary to learn a completely new market for a $20,000-$25,000 rehab property in a state you don't live in?

There is probably someone in that neighborhood right here on BP who can give you your 8-10k for the property as is and you can be done with it.

Nathan Bibb · Answer

"Handyman Fixer Upper". Throw it up on Craigslist & get the highest down payment you can for it. Sell it to them as rent to own. They are responsible for cap x, repairs, taxes, & insurance. Sounds like it may be a little past livable condition so depending on who you can find, you may need to put a little cash into it. I just looked at comps on the MLS & I personally wouldn't put a dime into it. On a positive note, days on market for properties in the 5-10k range are roughly 30-60 days so somebody is buying these things.

Greg W. · Answer

Thanks @Raul Pedrozo. I figured the location was only marginal since other properties were selling for such a low price. It seems as though the repairs needed are too many and too costly for it to make a decent rental unless they hold for a very long time. Not sure they are interested in doing that.

I wonder if there are other investors in Akron that would be interested in purchasing it?

Raul Pedrozo · Answer

Greg,

If your relatives have no desire to be landlords then I would sell it "as is" and get what you can out of it.

The neighborhood is not the kind that you want to rehab and "flip"in, you won't get your money out. That said, it may work as a rental if repairs/POS inspections, etc... aren't too high.

Nathan Bibb · Answer

Good luck!

Greg W. · Answer

@Nathan Bibb thanks for your thoughts. You're right, it does need to much put into it to make it livable. We'll see what we can get for it.

Akron, Ohio property; wholesale, flip or rent?

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