question about low income properties
Hi there.
Here is the specs of the property i'm thinking of purchasing:
SFR 2 bed 1 bath about 1000 sq feet. It's in relatively good condition although it could use a little touch up here and there. Seller owns it free and clear. She's been renting it for a while at around 225/month and is looking to sell quickly. Her brother owns it and she has power of attorney. Tax value is approx. 22k.
I think in her situation, she'd be willing to sell cheap, possibly with owner financing. I'm thinking of offering 10k and see if she'll finance the entire amount.
I guess my question is, has anyone had any success in investing in properties in low income areas? I could make it cash flow for about 100+ dollars a month or put a little work into it and sell for roughly 20-25...estimated.
I'm kind of 'iffy' on this situation b/c of it's location. It is right on the fringe of the mid to low income area.
Any advice or experiences would be greatly appreciated.
Thanks!
Vic
[addsig]
Anyone?
I can not see any reason why the seller would be willing to sell or 10k and offer 100% financing. Usually the PVA is below what the true market value.
As the location of the property, if the thing will cashflow that is mostly what matters. If it is a place where you could get robbed just getting out of your car, then pass on the unit.
How much tender lovign care does the unit need? Is is rentable at this time? What is the state of the other homes int he community? Talk to a real estate friend of yours to see if you can get some comps for the area. CS tells one to avoid 2br units unless that is the only type of property in the area.
To be honest there is no one that can tell you what to do here, I say go with your best value judgement.
I agree with Vern.
Remember that there are some properties that aren't worth owning, even if they are free.
This sounds like a deal that could burn you out of real estate. It might be lot's of headaches for very little profit.
....on the other hand, there isn't much to loose.
Many people won't touch low income properties, others make fortunes off of them. You need to figure out which one you are.
I'm in your market -proceed with caution Goldsboro is a tough rental market on the low end.In parts of the county 2-5 year old doublewides are being sold at half appraised value. -3 bedroom brick home in city at 35k unbelieveable-Mount Olive,Dudley,Rosewood-No rents($250-$350)-contact me if needed