OfflineI just got off the phone with a lady I thought owned a house I have been eyeballing for months. Just got the nerve to call at her work because I couldn't find personal #. Turns out I was the fourth person to call about the house, second person today! It's been vacant for atleast 8 or 9 months.
Found out (before I called her) she bought the house in 2005 for $88,710.00, taxes are 1558.00 annual. According to the county website it is not in foreclosure. Also checked foreclosurealert.com and realtytrac.
The house is a little rundown but seems very livible from the outside. It's on one of the nicest streets in town. Homes on the street are $100,000+ just by looking (haven't done comps).
She told me the house had 20" of water in the basement when she was there last! there was "very black" mold growing everywhere, and she was told she should just tear it down. She said the bank had it but I can't see how. Also, I was the fourth person to contact her about the house, second person today! There is a spring under the house (supposedly) causing the water, but the homes on either side and all up and down the street are very nice. It's definitly the ugly house in the nice neighborhood. She said I (meaning me) certainly don't want it and that it isn't worth $10,000.
I told her I was an investor and I could call back with any questions.
What do you all think? I would love some feed back. Haven't done my first deal yet!
Ryan
Sunset Real Estate Investments Inc.
Get good comps on the house. Get two or three estimates on repairs. Do at least these two things before you make an offer.
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
You may want to try something that may not require as much work for your first deal. Rehabs can become very time consuming and very costly. It is great to look at rehab deals and run the numbers because it gives you a sense of the market area and pricing.
The bad thing about rehabs is they usually can run 2-3 times what you think because of hidden problems you run into. Also, mold is a serious issue to deal with and there were a few homes that were torn down in a town near me that had flooding during the summer. Keep looking for those deals and I am sure you will begin to find a few more. Good luck with real estate investing. Believe and Achieve!
- Joe
YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
https://www.youtube.com/channel/UCiko62V79zLKX_owbirAYNA
TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA
https://twitter.com/JoeJurekCPA
Much appreciated guys.
Sunset Real Estate Investments Inc.
Don't be so quick to walk away just yet.
i have been in construction all of my life. I would salavate with something like this.
First, look for something obvious like a downspout that just deposits the water at the base of the home. Look at the way the dirt is around the home.
Most contractors will not tell you this or don't realize it themselves because they don't make money just putting in a little dirt to fill in a low spot where you get standing water.
It could be something as simple as an area where water just runs toward the house. correct the problem and you have a steal.
Jim
I am hesitant to shy away on this one like you say. I'm also in construction and I know the area well. that house has not been in that kind of shape forever! I'm guessing that there is a reason for the water problems, whether it's frost that shifted the ground opening a spring(I'm in Maine), or maybe some ground work next door that redirected water toward this house. I can't imagine this has been this way since the house was built!
I think I would like to contact the lady again to see if there is a way I can look at the place. What's it going to hurt? Like you said, maybe there's something there that other's haven't seen that could be the cause.
Thanks for all the input
Ryan
Sunset Real Estate Investments Inc.
Ryan
Like rikee says, don't walk away yet. I recently had the oppritunity to look at a house that has black mold in the basement. Turns out to be the house I grew up in. It was my mothers until she died in sept. 1999. I met the old neighbors and they told me it was foreclosed and no one had bought it yet. I asked if they knew any more about it and thats when I found out that there was black mold. How did black mold get in that basement? There are no windows. Must have been a broken pipe, right? Wrong. They installed an egress window, the rain gutter was cut off dead center above the window, and the cover was not tight to the building. When it would rain, the water poured onto the top of the well cover, but being it was not tightly secured, the water leaked behind the cover and into the well. Black Mold was present throughout the basement, mostly on the false ceiling tiles, paneling and drywall that they installed. So I just removed all infested materials, and cleaned what could not be removed with a solution of bleach and water. P.S. If you do this kind of clean-up yourself, wear a disposable uniform or clothes you can throw out, a mask, and disposable rubber gloves.
Mike
If you think you can; you're right.
I agree with Jim. Since both of you are in construction, you are both coming up with great answers to this water problem. My house sits above an underground river or creek and in all the time I have been here, NO PROBLEMS. Research and think, that is what I have to offer. This deal sounds too good to turn and walk away. Keep me posted....Jan
sounds like a potential can of worms, the water is easy to solve, but the mould and any rot can become something much more serious.
my advice would be to pass
Home Information Pack Berkshire )_/'\_/'\_) Prospect.co.uk
I would definatley look into it further. If she said its not worth 10k I would remind her, since you said its not worth 10k what do you think you would sell it for?
look into how much it would cost to repair and fix the problem. Like you said it wasn't like that for ever, there has to be a reason for the condition. Once you have an estiamte on how much it will cost to fix it, you can come up with a offer.
good luck
Richie.