Buying a run down property in a nice area

Hey everyone,

So the more I read it sounds like people have to get very out-of-the-box to find deals, and the traditional routes won’t net a solid investment deal. So, I’ve been driving around my area trying to find some run down spots that I could possibly pick up.

So, I’ve found a spot that’s right near downtown but it’s run down. Like really run down. It’s a large plot of land with two buildings. One looks like it might have been a few apartments but the other looks like it may have been commercial? It’s hard to tell. Anyways, I’m figuring the owner might be ready to unload this thing super cheap if I could get it, but where do I start? How do I find the info on this property? What information is public knowledge? Do I need to go to town hall?

BTW, this is also near a college which could help make sure there are renters.

Local Accessors site. One of the best webtools that is going to be your friend.

http://publicrecords.netronline.com/

This is totally unrelated to the property I found but here…

http://www.phillycashflowproperty.com/?q=2346NCarlisleSt

It says the cashflow is $643, it seems like they’re missing something in the 2% equation?

Looks like those taxes aren’t listed correctly. Buyer beware. Sellers lie! (especially when listing cash flow)

and Taxes are public info? Of course I wouldn’t trust them but it was nice to use as an example

Assuming you understand the local market and have reasonably accurate estimates on bringing the property back in line with the rest of the neighborhood, buying a run down property in a nice neighborhood is, in my opinion, one of the best real estate investments available. You buy at a big discount but rent at market rates after repairs, thereby increasing both the cash flow and rate of return. In addition you should wind up with significant equity in the property. A win win win. This is the strategy I have been using for the past 6 years.

Yes. Taxes on properties are public info. In your area, you might even be able to find it online. In my county, I can look up tax info online and see what the current rate is as well as if taxes are delinquent or not.

Of course, you should also research whether or not you can challenge the current property tax, and lower it, therefore bringing down your costs.

I actually just got something in the mail about this. In my county you can in fact do that

Yes, you can protest property taxes! DO IT! I protested 8 properties this past year and saved $2,964 in annual property taxes or $247 per month!