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Garrett Brown
  • Rental Property Investor
  • Houston, TX
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A house is cheap for a reason. What's your #1 walk-away red flag on a "motivated sell

Garrett Brown
  • Rental Property Investor
  • Houston, TX
Posted

There's a map going around showing motivated sellers all over the Sun Belt right now, and it's tempting to treat every price cut like a green light.

But a discount is only a discount if the deal actually survives your underwriting. Sometimes a house is cheap because the seller is stuck. Sometimes it's cheap because it's a trap.

So I want your one non-negotiable: the single red flag that makes you walk, no matter how good the number looks.

Insurance quote that eats the whole cash flow? A neighborhood the numbers can't fix? Foundation, flood zone, an HOA from hell? Give me the one that's an automatic no for you, and the story behind why it made your list.

I'll feature the best answers in Thursday's Investor Brief.

  • Garrett Brown
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    Jaron Walling
    • Rental Property Investor
    • Indianapolis, IN
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    Jaron Walling
    • Rental Property Investor
    • Indianapolis, IN
    Replied

    Foundation, flood, and fire damage are automatic no goes for us. 

    We're also steering away from 1920-1940s solid masonry walls (also called double-wythe brick) houses. The brick itself acts as the structural support and weather barrier. Sounds great right? After living in one for 2 years and doing a live-in flip I will not buy another. It was difficult to find replacement windows and doors (smaller sizing) and interior renovations were difficult due to lath and plastic walls. The hardwood flooring was thin like 5/16-inch "top-nail" oak strip flooring. It was beautiful but creaky and unlevel in some places. 

    Anything within the exterior an wall was a nightmare to to fix; examples would be electrical, plumbing, or ventilation. On a positive note the wood structure in the interior like a tank with old growth 2"x4" lumber. We remodeled it and brought it back but I'm glad we sold and moved on. 

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