Abandoned Homes

I am new to real estate investing and just finished a complete gut and rehab…learned a lot and came out on top. I just started renting the home out and am getting itchy to try another. In the neighborhood within a mile there are three abandoned distressed homes that have been this way for an entire year or more… basically there in the same shape as the house I just finished. Difference being I bought mine as REO from the bank. I’m guessing that these are owned outright not sure. I have found the owners through the town…what’s the best way to try to tie one of these houses up?

First things first. You need to determine who the owner is. Once that is established you can do your due diligence, determine value, and make your offer.

there’s so many houses for sale now - reo’s and short sales - why bother with abandoned homes?

I agree with TMCG. Remember you find what you are looking for. If you look for a project you will find a project. If you look for a property that makes money you will find a property that makes money. The 2 are not always the same. For example I found a house last year and paid 60% of retail value. This is 60% of what every other house just like it in the same neighborhood sold for in the last 6 months. That house only needed paint and clean the carpet. That house makes money. The house next door to it required a major rehab. A buddy of mine bought it. He made money to, but he had a project I didn’t.

You don’t happen to be in Dallas do you? :slight_smile: I’m always looking for guys that want to rehab and make a good profit off the killer deals that I find. Everyone on here seems to want the quick money, but I think it’s cool that you have a passion for fixing up properties. You can still make GREAT money… maybe just not quite as quickly.

No Jimmjams I am in Houston.

Exactly why bother for abandoned homes when there’s many shortsale etc. Find the owner, get the price of the property, calculate ARV and think. Abandoned property doesn’t come cheap. Nick Brian.

If you know who the owners are though and they may be owned free and clear. Send them a letter to their current address and try to get them to call you. Then lock the deal up with a purchase agreement. Abandoned home owners may be harder to find but there is also less competition.

No I am on Cape Cod…

hi don mind me know which country n town you’r talking about?
thank you. and wat is the average price now.

do your self a big favor and take the time to learn why those houses were abandoned in the first place and if they are worth your time and money to invest in. There may be structural, environmental or other issues like crime rates, poverty, etc. Speak with a good realtor or three to understand the area.

If all looks good, go forward.