Seeking Advice for bad property

Out of State Investing
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Seeking Advice for bad property

Lucas DeAndrade
Member since 2021 · 4 posts · 11 votes

Purchased Out of state SFH for long term rental. It has been nothing but headaches over the past year. Newest quotes came out to over $20k. Did I just buy a lemon? When is enough enough. When do I sell because I'm getting real close to call it quits now

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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
4mo

@Lucas DeAndrade What are the numbers saying? What is the market doing right now? 

We're in turbulent weather but the skies will clear. It sounds like big orange head negotiated a trade deal with Iran and open the strait again. Elon Musk is a trillionaire. Let's stay positive. 

Can you finish the remodel, boost the curb appeal, and sell it for a profit?

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  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    4mo

    @Lucas DeAndrade What are the numbers saying? What is the market doing right now? 

    We're in turbulent weather but the skies will clear. It sounds like big orange head negotiated a trade deal with Iran and open the strait again. Elon Musk is a trillionaire. Let's stay positive. 

    Can you finish the remodel, boost the curb appeal, and sell it for a profit?

    3Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    4mo
    Quote from @Lucas DeAndrade:

    Purchased Out of state SFH for long term rental. It has been nothing but headaches over the past year. Newest quotes came out to over $20k. Did I just buy a lemon? When is enough enough. When do I sell because I'm getting real close to call it quits now

    Hi Lucas, that's a frustrating situation and I think a lot of investors have been there at least once. Before deciding whether it's a lemon or whether to sell, I'd take a step back and look at the numbers from today forward rather than focusing on what you've already spent. Are these one-time repairs that will stabilize the property for years, or are they signs of ongoing issues that keep popping up? I'd also get a second and even third opinion on the $20k worth of work because repair estimates can vary dramatically. If the property will still cash flow and meet your long-term goals after the repairs, it may be worth holding. On the other hand, if the property has major structural problems, weak rental demand, poor management, or the projected returns no longer make sense, selling and redeploying your capital could be the better move. I wouldn't make the decision based on frustration alone, but rather on whether the property still makes sense as an investment today if you were evaluating it fresh. Sometimes the best deals become great after surviving a rough first year, and sometimes they teach us what not to buy next time.

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  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    4mo

    If you post more information I bet someone here can offer advice. I've had a money pit in the past but it was in a stellar neighborhood and although it ended up driving me crazy for the first 3 years the updates eventually let up and you will have a break for a while. Now if someone sold you on an out of state in a C or D neighborhood and it is requiring constant updates I'd be more inclined to sell from an aggravation factor but that isn't necessarily the best financial move either.  Sorry you are going through this.

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  • JD MartinBusiness Member
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    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
    4mo
    Quote from @Lucas DeAndrade:

    Purchased Out of state SFH for long term rental. It has been nothing but headaches over the past year. Newest quotes came out to over $20k. Did I just buy a lemon? When is enough enough. When do I sell because I'm getting real close to call it quits now


     No way to know the answer to that without knowing more about the property and your end game strategy, probably more information than you can even post here. Is the house completely rehabbed or just mired in non-stop projects? What's it potentially worth when it's done? How much will it rent for? How long do you plan on keeping it? ETC. 

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