Rental Property Investor · Member since 2021 · 423 posts · 190 votes
For instance, if they usually get a contract for a deal at 60 cents on the dollar and now because it’s a drug house get a contract for it at 40 cents on the dollar. Would a 33% discount because it’s a drug house entice them?
For instance, if they usually get a contract for a deal at 60 cents on the dollar and now because it’s a drug house get a contract for it at 40 cents on the dollar. Would a 33% discount because it’s a drug house entice them?
It’s in New Jersey.
Makes zero sense, its all about the location, nothing to do with the low lifes living there. I buy and sell monthly in the Cleveland markets. So I know a thing or two about problem tenants. BTW what the heck is a drug house???? Just evict the drug dealers, which I assume thats what you mean.
Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
3y
It really just comes down to the location and the numbers.
A 5% discount or 10% discount or 33% discount wouldn't mean anything to me. I don't care if the house has mold, termites, rats, foundation problems, if it was a hoarder house, if it was a drug house, whatever.
I just run the numbers the exact same way every time to determine if the deal fits in my buy box.
For instance, if they usually get a contract for a deal at 60 cents on the dollar and now because it’s a drug house get a contract for it at 40 cents on the dollar. Would a 33% discount because it’s a drug house entice them?
It’s in New Jersey.
Makes zero sense, its all about the location, nothing to do with the low lifes living there. I buy and sell monthly in the Cleveland markets. So I know a thing or two about problem tenants. BTW what the heck is a drug house???? Just evict the drug dealers, which I assume thats what you mean.
For instance, if they usually get a contract for a deal at 60 cents on the dollar and now because it’s a drug house get a contract for it at 40 cents on the dollar. Would a 33% discount because it’s a drug house entice them?
Columbus, OH · Member since 2023 · 427 posts · 254 votes
3y
Tenants shouldn't negatively affect the home's value. At the end of the day, you're crunching the same numbers. This could be a factor if it's common for houses in the area, otherwise evict them, clean it up and go from there.
Rental Property Investor · Member since 2019 · 411 posts · 148 votes
3y
@Mike Schorah investor from NJ here. The price is going to have reflect the condition the property will be delivered in. Are the tenants paying or not paying? Is the place in need of cosmetic rehab or gut reno? The answer to these questions will help you gauge what the appropriate price is. I'm also licensed in the state so I can assist in providing comps from an investor perspective if you'd like
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
3y
@Mike Schorah
I'm a buyer in New Jersey and it wouldn't bother me at all. Nor would I be looking for that steep of a discount. Our offers are pretty competitive regardless of the situation.