DOWNSIDES of buying a bad fixer upper? $50 K House in Jackson, MI

[Chanel Pearson]

Hi Everyone!

I've spent the last few years watching and being inspired by Bigger Pockets. I am a dual citizen, and find Canadian real estate is just too expensive.

There are really cheap duplexes in the US, such as Jackson, MI (and other states) - there are fixer-uppers, some as low as 18 K. I know a lot of these houses are in cheaper neighbourhoods - but if the house is the worst one on the block and just needs TLC - why are these houses not being scooped up? What am I missing? I remember distinctly in some BP videos how they talked about buying low, fixing, and renting out - buying the worst house on a nice block.

My plan is to buy, and fix up - live in one side and rent out the other as a very very beginner. Is this likely a bad move for a beginner, as it could go all haywire with fixing? I don't want to get in over my head either - but I have lower savings and won't be approved for something over 175K.

Thanks for any insight!!

[Mark Cruse]

Too many newbies see cheap prices and feel they cant lose. There are tons of things to consider and if you really dont know what you are doing, its a significantly high failure rate. These are high failures for experienced investors. There are thousands of investors, virtual assistants, groups, organizations and so much more who sit around all day trying to scoup up any decent deal they can. If sitting a while, its most likely not a deal where the numbers work. Also, you want to house hack? If you land on a Class D are you equipped to live under stuff that may be foreign to you (property crimes, shootings, break ins)? Do you know how to manage tenants from this environment? It can be so so so different than managing class A and B. Many investors fail here because they dont understand the climate, people  or culture, in addition to having no idea how to screen. My over all point is, stuff looks good and easy on paper but itś not. Many things to consider and tons of research is necessary. I specialize in these areas and Iḿ telling you, you really need to know and understand what you are getting into. Super cheap in multiple cases means class d. If you become well schooled and thoroughly understand all the dynamics you can make tons of profit.