Handyman Special - Duplex (First Investment)

[Aaron Phillips]

Hello BP, 

I have been doing some studying of my area looking for my first property to invest in and stumbled across a Handyman Special Duplex, and the seller said it's a clean title $5,000. The reasoning for selling so cheap is because they had someone on a land contract who couldn't keep insurance on it and didn't pay the taxes. They said they don't have the time to fix it up or the money to put into it right now. 

I asked a few questions such as; Is there any known foundation issues? Is there any known plumbing issues? Is there any known electrical issues? Just trying to figure out if the place is going to be a money pit or a good potential money maker as advertised by the seller. 

I've always been taught a good rule of thumb is "If it's too good to be true, then it probably is." but when it comes to real estate, wholesalers seem to find these properties by the dozen. 

I have a showing to go to on Sunday. Do you all have any suggestions for me before I go to the showing? I don't want to walk into anything that could turn up a disaster later. Do you all think this might be too good to be true? They were previously renting both sides for $650 /mo a piece. One side is supposed to be renter ready, and the other side is going to require "some fixes."

Any advice on how I should approach this is helpful!

[Jim K.]

@Aaron Phillips

Call a home inspector and convince him to come with you, no report necessary if he just shows up and lets you walk the property with him? There are plenty of guys in that line of work who will do it for maybe $250.