A real deal, that I dont know what to do with

I have my first real deal that but I dont have a firm exit strategy. The house is in a war zone( I dont mind) but is for sale for $1200(not a mistake). The tax value is 31,000 and the comps say it can sell for 25,000. It was a SFH that was converted into three studio apartments 3/3. There is also a garage apartment in the back.

So far all the investors that I have talked to have decined the whoelsale deal( Im asking $3500).

NOw I’m thinking of buying it cash and holding it until I come back from Japan.

It is so cheap that I think it wouldn’t hurt to have it and put it on the shelf.

Does anyone have any opinions aobut this?


Why do you think all the investors are turning it down? Must be a real piece of junk in a piece of junk area.

I would not buy it from Japan. I would at least put an eye on it. It may be walls with no roof, just open to the sky with no pipes or wiring. I have seen that for sale before.

Im in Dallas now, and Ive been there to see it.

How much are the yearly property taxes?

10 years from now the LAND it’s on may be worth a hell of a lot more than the structure is now. You have to figure out the holding costs. If it doesn’t cost much for you to hold it, just buy it and forget you have it. I’ve seen guy’s go this, mostly old timers, SOME of them, 20 years later, are sitting on a plots of land that people will pay VERY respectable money for.

You need to do more research, any yearly fire taxes? How about insurance, if some kid goes in there and breaks his leg you better have coverage, especially in THOSE neighborhoods, the people living there know more about the laws than half the graduating Law students.

Thanks pete. The yearly taxes are around $900. I need to find out more about the insurance costs.

Property Manager what do you think?

I don’t know what Mike will say but… $1200 + 900/year firgure 10 year hold (worst case) your into it MINUS insurance for maybe $10K???

I think you could do it as almost a “marker” you leave it there and if it pays off done the road it really was cheap.

Then again, I don’t know your situation, You could buy income producing properties But, If your living in JAPAN dealing with a U.S. rental is going to be a lot of B.S. Not to mention you’ll obviously need pro management which means you’ll need to buy your rentals even lower than Mike usually suggests. With that in mind it might be a perfect investment for someone overseas you doesn’t want to deal with it.

I think you’ll find insuring an abandoned building VERY expensive. Especially in a combat zone. The cost will probably blow out the numbers.
It’s a guarenteed FIRE waiting to happen.

Heck, for $1200 bucks, it may be worth buying and TEARING down the structure, and then holding it. No insurance necessary on vacant land (check state laws, though). Someone may even pay you for the house (check those house movers), or at the very least not charge you to tear it down/move it.


Especially if its old and has salvageable antique hardware and trim.

Im in Dallas now, and Ive been there to see it.


Well, what does it look like? Is is rentable in it’s present condition? Are there renters in there now? What are the rents? Do you have someone to manage it?

I would not buy it and leave it empty. That’s an invitation to disaster. If it’s in a war zone, it will rapidly become the neighborhood hangout for every homeless drug addict and hooker and you’ll have a real problem on your hands. These druggies will not only steal every peice of metal, they might very well burn it down. You will be liable for all of this. Sometimes a property is worth less than nothing and depending on the situation, this could be one of those cases.

On the other hand, if it’s rentable or can be made rentable for a little cash AND you’ve got someone to manage it, then I MIGHT buy it (I still don’t like the long distance landlording). Operating rental properties is all about the money. I like to make good money (combat pay) if I’m working in a warzone!!! SHOW ME THE NUMBERS!


It’s a flop-house.

If you could find someone to manage it, even for a hefty percentage of the rent, your payback period should be only a few months, shouldn’t it?

You have three or four apartments that, even if they rent for only $100 a month, will get you whole in months.

What do you mean by in a “war zone”?

War zone = high-crime, open-air drug markets, etc.

OMG I would not touch it. I guess someone has an appetite for that stuff, but life is too short. Sounds like umpteen headaches for “some” profit. I guess the allure is low acquisition cost. Yikes!