Rental Property Investor · Chicago, IL · Member since 2017 · 15 posts · 7 votes
Hi all!
So my agent has brought me a deal that fits my criteria. Sfh, 4 bed, 1.5 baths (and plumbing for another in the basement), brick home and in a decent C neighborhood. Need a full rehab.
My goal is to flip it and if everything goes as planned I will see a 30k profit according to my calculations.
My resistance is that there is an ugly house two doors down that is abandoned and doesn’t have a window on the top level. Someone bought the house about 9 months ago but has done nothing to it. Would this be a deal breaker for you?
There’s also a vacant lot right across the street just ahead of railroad tracks. Is this a deal breaker for you?
Monroe City, MO · Member since 2019 · 4 posts · 2 votes
7y
Try to offer on the abandoned property, if it is a neighborhood that you can see value in doing it. You never know, you may end up with a better deal for both by adding value to the neighborhood.
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
7y
@V. L.
I have passed on a similar house before (right next to the abandoned crack house), but it depends on what the overall neighborhood currently is, and will be in the future. Is the area going to be revitalized, or are you about to rehab a home to be the nicest on the block? Nicest house, but same rents as everybody due to area? What is the possible future for that vacant lot? Are you the first to improve this neighborhood? BP podcasts have suggested that a perfect time is not ground level, but about 25% into a neighborhood being revitalized.
Real Estate Agent · MA · Member since 2018 · 167 posts · 57 votes
7y
@Account Closed Do you have any information on who bought the abandoned property? I would do more research on that especially if renting the unit is not an option.
Monroe City, MO · Member since 2019 · 4 posts · 2 votes
7y
Try to offer on the abandoned property, if it is a neighborhood that you can see value in doing it. You never know, you may end up with a better deal for both by adding value to the neighborhood.
Rental Property Investor · Chicago, IL · Member since 2017 · 15 posts · 7 votes
7y
Thanks guys. I decided to pass move on. There are far too many other good opportunities. Also, within this time I've become a real estate broker, so it would be a lot easier for me to find what I want more effectively vs having an agent that's advising me to buy any ole thing.