So I’m in search of a bit of advice for this one lead I got. Now I’m still a young blood at this so I don’t want to kill the contract prematurely but I’ve got my first hell hole house. I talked to the seller and we negotiated to the point of 15k for the place subject to my inspection. We’ll I go and inspect and this place is horrible. Trashed out, bugs everywhere, roof caving in, and let’s just say those are the nice points. ARV for this area is about 30k fixed and this place needs at least 26k or more in TLC. Rent is running about 500 a month for most places. This is not my normal farm area so I’m a bit nervous. I’ve had two investors contact me on Craigslist but now cricket after running the add for a week. So my question is should I renegotiate or not. I possibly could run into the fact that no one wants this hell hole even at a lower price. Rando I think this might be your area of expertise. Any advice would be helpful.
If you got this place for free I wud ask for my money back. A caved in roof? And the house prob needs a full rehab and maybe has foundation problems. No, don’t walk away, RUN FAR, RUN FAST. With an ARV of 30K? Where the heck you located?
OK that was my gut intuition. It’s a place in SC where land is super cheap and you can get a decent rental for 15k. I will be writing my letter today lol.
Dude, if you can get a 2/1 for 15K that will generate 500 a month in rents, I want some.
Oh definitely can. It’s why I gave the contact. The numbers were right, not in a ghetto area, and online pictures looked decent. Unfortunately it was quite deceiving. Most 3/2 rentals in that area are running about 22 to 25k with 500 to 600 about the average rent. A 2/1 will bottom out at 400 and support 500. With a bit of marketing you can get them from 10 to 15k. I wish I would have found this business in 07 or 08 when they were going for a small sum of 5k to 8k for a duplex and 3/2. I would be retired now sipping drinks in Aruba.