Bad neighbors worth investing?

5 Replies

Hey guys ! Quick question: can having a trashy(hoarder) or bad neighbor make your house appraised for a lower price ? Agent just contacted me a house in that can sell for 1.1 million (according to comps) but seller has to sell because of a bad neighbor. Seller wants to sell for around 700K. Also HOA fee of 110 Hypothetically if I can cash flow $700 a month, is this property worth to pursue with a 5% ROI in Orange County? Thanks

@Peter Bui if the agent your dealing with is telling you the truth, why not purchase the property and rehab it. Then sell it and make $300k. How long would it take you to make that at $700 a month which I also doubt.
Good investing.

Hey @Joe Homs ,

That’s that’s a good idea, thank you for your advice, would you by any chance want to look at the property yourself and give some feedback. And if you think it is a good enough deal, maybe partner with me?

What precisely is wrong with the neighbors? Are they committing code violations that code enforcement can force them to clean up? How about offering them help with cleaning up their yard and getting excess junk hauled away which can definitely increase the value your property in a buyers eye?

You should be viewing the bad neighbour as a major plus. Leverage the HOA and the municipality to force the bad neighbour out if you buy. You could then also profit from purchasing their property as well. That would be my goal.

If the seller is forced to list at 700K I would be making an offer at 600K. At that value I would make sure the neighbour was history.