THE THREESOME IN THE HOOD!!!

8 Replies

Catchy title huh? Lol, you're nasty.. Just joking...

But anyways, back to business.

I recently found someone that is selling 3 properties for 10k. The properties would require a major facelift and they aren't quite in the nicest neighborhood either (not quite in the warzone, but you can walk there pretty quickly). Two are two bed, one bath, and the other is a small duplex(guessing 2 BD 1 BH). I've emailed the seller and told him that I wanted to speak with him on the phone, but I honestly have no clue what to ask.

I'm assuming that everything is free and clear, but I'm more focused on if I should even worry about the properties because of the location. It would be a super amazing buy for someone who deals with Section 8 housing, but I just don't know...

Any advice or questions are welcome and greatly appreciated!

Hi @Chaz Reid . Is that 10k each or for all? I have rentals in the south side of Statesville, similar neighborhood to what you described. If it's for all of them, I'd probably do it. Then depending on other funds available, get one fixed and rented ASAP, then work on the others.

If they're 10k each and need a ton of work, it may not be worth it. Any comps to go by?

Do you have a couple of solid cash buyers who would like properties in this area? If not, I'd walk away. Personally, I would not invest in neighborhoods that are selling houses for 10k, but that's because the tenants I prefer would not live there.

@Christine Glasner

the 10k is for all 3 properties. There was nothing recently sold anywhere in the area. RE is kind of slow in this particular town. But when I used Zillow, they were estimating the property values ranging from 40k to 70k. They are all on the same street right beside each other.

@Jason C.

I have one buyer that is interested in this town. He is a retired contractor and says he's looking to get back into things.

Chaz.

Go to the properties. Evaluate what needs to be done to them to make them ready to go. Add that price plus the acquisition cost. Is it lower then area comps? Or is it higher?

After you do tthis you will know what you will want to do.

James Wise, Real Estate Agent in OH (#2015001161)
216-661-6633

@Chaz Reid , zestimates can be a bit sketchy. If your buyer plans on doing the work himself, you may be able to wholesale them for a quick turnaround.

Iagree with @James Wise

@Chaz Reid

Drive by and check out the neighborhood as well, maybe playgrounds, schools, stores etc will make it more desirable when you look to market it to potential renters. The cost of the repairs is what scars me though, I wish I stayed there with my team I would be all over that deal today and if the numbers came out to my favor I would pull the trigger and offer $7k-$8k first to see if they will come down on price even more because they sound Motivated!!!

I just did that yesterday on 2 Brick homes here....

Park your car and walk thru the neighborhood , If you dont get shot , mugged , solicited , arrested , and your car is there when you get back , I would give the properties some consideration .

Join the Largest Real Estate Investing Community

Basic membership is free, forever.