After passing on a few deals and putting some offers in with no luck... I think I might have found my first deal. I personally feel like it's a low risk deal, but maybe you can tell me what I'm missing!? I would be BRRRR'ing it. Think there's quite an opportunity to pull some cash out.
Former foreclosure house, currently owned by a company which buys foreclosures in bulk... They've had this property on their books for 6+ months... started at 43k... its down to 20k. It sold in 2000 for 64k. Currently the county has it appraised at 73k. There is a 3bed/1bath 1100 sq ft property for sale down the street recently renovated listed for 80k. The property I'm looking at is a 3 bed 2 bath 1600 sq ft.
Property is located in a small rural town, 20 miles outside a large metro city (500k+ population) A lot of people like to live outside this city because the public schools are rough, but the jobs are in the city.
Property does need some work, but pics show nothing major. Flooring, paint, light fixtures, looks like it has a wood stove which I would yank out (I'm also an insurance agency owner, I hate wood stoves ha) and replace with something else. House was built in 1955, crawl space. Roof looks good.
Had a hard time finding comps... found one listed on Craiglist in the same town that looked like a brand new reno for $900. I figure I could get 600-700 with the work I plan on doing. I wouldn't make it perfect, but I'd make it nicer for sure.
Also side note... has anyone ever like jacked a deal on here? Ha someone could totally figure this property out with the details I have... just curios if I should be a little more vague on my descriptions or of theres somewhat of a gentleman agreement among users. Obviously not likely on a 20k house so I'm not too worried, but just curious...?
It happens a lot to people who volunteer too much information on a property they don't have a contract for yet.A 20k property in a potential 80k neighborhood? If true,Yeah I would definitely be looking for that if it was on the MLS for the whole world to see and my investor clients here in California are hungry for a good deal.If it was still off market and can't be found by the General public yet,it would be safer to talk about it here.Out of respect for you I promise not to look for it.I have my hands full here in LA anyway.Good luck to you.
Hey @Travis Tannahill , have you been able to get inside and see its condition for yourself? Pictures cannot tell the whole story. There's a reason it hasn't sold yet. Find a local Realtor who knows the house, or knows the investment RE market in your area, and see if you can find out more about it. They can also get you real comps. Sorry, Craigslist won't do.
As for your side note - I don't have personal experience with that, but I think its a valid concern, especially in larger markets or areas with many BP members. You probably aren't the only one who knows about it, but there's still no reason to broadcast identifying details.
@Travis Tannahill nice job finding that property. My main concern is if you'd be able to keep it filled, since it's rural.
I wouldn't worry too much about others stealing your deal - chances are it would be too much effort for people, unless they are in your backyard.
Getting inside is the next thing on my to do list... have a call put into the realtor.
aaaaaaaand it's a no ha. Needs 40k to be livable. Too big of project for me.... on to the next one!