I have seen alot of properties that looked like great investments, i was wondering if anyone here has ever purchased property off EBAY?
I have to admit that I punched “investment property” into the search once myself. A few properties came up, some that were really cheap. The more I looked at the pictures, the more run down they looked. I’d say barely rehabable at best. I would be VERY leary. The main reason is that you have no clue what the neighborhood is like. All the old real estate lines like “location location location” ect ect is very true. People shop neighborhoods first and then homes… Another reason is from a line from a book I read which was, “just because it’s cheap doesn’t mean it’s a good deal”. That is so true for all investments. It doesn’t matter how cheap something is - if you can’t move the property and gain on your investment you could be in trouble. I would only consider properties that I could do research on.
Jeff
I did buy some property on ebay but it was around the corner from some property I already owned (it was an REO).
A lot of that property is truly crap-o-la and many of the people selling those properties don’t bother to tell you they bought it a tax sale or it has other problems (despite their claims of it being “prime”)
Exercise extra caution (IMHO)
I have been looking there too. There was a property in Rochchester New York that had a buy-it-now of $21,000. They guarentee’d 12 months of rent at $725 per month or they would pay the rent payment until occupied for the first year. Also do P.M for the first year at no cost except service calls. I didnt proceed very far on this deal, but went on Realtor.Com and seen the same property was listed at $15,000. I wish i had the money to back me cuz there are some nice houses that could be rehabed and sold for a decent profit. I just cant afford to leave my job to travel around and rehab these properties. I would like some more talk on this subject as well. Thanks
black95gt .That is exactly what Im planning on doing so to speak.think of it if you take three months per rehab(remember this is your job now ) you would be able to get 4 done a year . at 20k per prop profit .Thats 80k per year.I currently only make 35k/year and I hae done 13 rehabs near me and I can get one done working a full time job in between in 1 1/2 months.Love that hard money ;DAs for the ebay thing I too have seen these prime examples of historic relics and my belief is you get what you pay for .I bought a triplex 3 years ago for 165k that was condemed by the city, was considered structurally unsafe , had a $45k in leans from the city code violations and growing at $200 PER DAY. But I had a vision and 3 months $45k later The place was rented out and appraised 1 year ago for $525k.My thought is If it has 4 strong walls and a sound electrical and plumbing system (even if they need updated)WE CAN REBUILD IT ;D The question is Whats your limits?How much work are you willing to do ?How much profit are you willing to sacrafice because …ITS TOOO UGLY?
What is your feelings on mold issues? If the house is beautiful and in a very desirable area- of so. CA. fmv at approx. 850-900 but mold issue with general contractors estimate of 100,000 to remediate- and replace walls etc. can’t see mold- house shows gorgeous. You being a rehabber, what would you offer? too costly and time consuming for owners to fix( me!) but they stiull carry large loan on it. wondering if I could break even or more if I sold it rather than repair but then have to rent while fixing. also has a huge koi pond with waterfall in yard- can’t just leave town- maintenance! PC really would appreciate your advice,
My thoughts on mold are the same as lead based paint .There are laws that say we must disclose that there could possibly be lead based paint in this home if it was built before 1978.Period. and there are laws now that say there is possibly MOLD in this home bla bla bla .Unless you or someone before you THAT YOU KNOW OF has an actual report of such things then its all speculation at this point. DO NOT PAY AN INSPECTOR TO TAKE YOUR PROFIT!!!
When I look at a property I ask myself , Are the walls sturdy? Is the foundation sound? are the roof trusts stabil?If I turn the light on is the place going to snap crackle and pop? If I light a match is there enough of a gas leak to blow me to the moon?If I flush the toilet is the crap going to run out into the street? The answer to almost every one of theese questions is almost always no.The BIG question is ,“Am I buying this thing cheap enough to fix , upgrade ,plumb, paint , patch , cover, hang, and repair everything that needs it.If your paying $12k for a house and your doing most of the work yourself I dont see how it could not be worth it.If you are hiring contractors . DONT TELL THEM ’ HEY I THINK THERE IS MOLD HERE CAN YOU GIVE ME A REPORT” cause you may by law obligate yourself to remedy it now for thousands of $$$$$$$ because you have a report( depending on your state).Everything outside of what I stated above can be repaired reasonably.Re sell the house AS-IS-WITH RIGHT TO INSPECT.When they ask 'IS THERE ANY MOLD?" you have 2 options 1) Tell them " Why yes it is every where and it will cost THOUSANDS TO REMEDY- , or 2 ) Not that I know of but Im sure there is some trace of mold in the moisture areas ie, bathroom, kitchen I would actually be supprised if there wasnt. 
remember your selling the home AS-WITH RIGHT TO INSPECT and only allow 5 days for inspection.
If you do not know what it costs for repairs.I suggest you call a bank and ask if they know of a home inspection company.Banks have the toughest peramiters so you want to use someone they reccomend .Have the Inspector for about $250 come to the home YOU ARE LIVING IN and drill him on every issue you can possibly think of.That information is priceless.Ask him if there is mold in the house what do you do.He will probably tell you to go to your local grocerie store and buy some bleech and have at it with your cleaning :)and save yourself a few thousand $$$$$$$$.
Rule of thumb “You cant tell someone something you dont know” When it comes to problems with your home your selling , if your confident its safe sound and secure and you dont have any reports telling you otherwise ;D What mold ?;D
campbell has a good point, but of course you have to be very careful here in Calif. with respect to disclosure.
I think an attempt to cover themselves, many people over-disclose. In other words, only disclosure what you ACTUAL know (i.e. have seen with your eyes) vs what you THINK you know.
To give you an example. You own a house and their are water stains on the basement floor. However, you have never seen the floor have water on it or wet. You decide to paint the floor and then sell the house. What do you disclose. IMHO, nothing. And if ask “do you have water in the basement”, I would answer, “no, I have never seen water in the basement.” The fact of the matter is those water stains could have come a leaking pipe, a house left running outside the basement window, etc; you do not know so don’t assume
The point, what do you really know? Did you take wallboard down in the bathroom and find some mold? this is very common to happen (BTW, there are hundreds of types of mold; most are not “toxic”) You talk about contractor estimate? Did you have someone come to the house and give you a formal, written estimate? Did you have a mold inspector come check out the enitre house?
My point is you need to be accurate and exact in your disclosures, but don’t make assumption when doing disclosures; just state fact that you either have observed yourself, been disclosed to you from the previous owner (in writing), is common knowledge in the neighborhood (i.e. your house burned 2 years ago and the fire department came at 2am and your neighbors were int he street watchin’ the action) or the result of an inspection by a licensed professional.