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Updated about 10 years ago on . Most recent reply
#3 Questions About BiggerPockets & Official Site Announcements Contributor
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- Maui, HI
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What are some examples of "problem properties" you would never want to buy?
#3 Questions About BiggerPockets & Official Site Announcements Contributor
- Investor
- Maui, HI
Savvy real estate investors often like to buy properties that have problems, which can help us snag a great deal. However... not all problems are good.
What are some examples of "problem properties" you would never want to buy?
For example, I don't want to buy a property with a major foundation issue. I don't want to buy a property with a "problem neighbor."
What else?
(I might use your answer in an upcoming book for BiggerPockets!)
Most Popular Reply
@Brandon Turner, If I am looking at properties and notice the ridge beam sagging I usually run the other way. Also I am not a big fan of properties with multiple additions that don't meet up correctly/ different floor elevations/ roof lines, etc. Also, homes built without enough crawl space to get in and inspect. Flood plain properties. Almost anything can be corrected but I am much pickier now that I was 15 years ago. If the price was right I would tackle anything. Now I look for cosmetic flips and same with my buy and holds.
Quick story (big mistake on my end) referring to foundation issues. I have looked at hundreds of properties, built and remodeled many homes. This past October I found a home being auctioned at the courthouse steps. I knew the area well and it was a great deal. I hurried through the home and it looked great. Full basement, story and a half, with ARV of $139,900. Purchased the home for $27,500. Went back to the home after the auction and noticed one of the walls in the basement was leaning in and cracked badly. I had to have a structural engineer come in and make recommendations. Then ended up having to pour a 12" concrete wall against the original block, adding and additional $7000 to my rehab. Luckily there was plenty of room in the budget for my mistake. I got a little off topic but it's important to realize no matter your level of experience, mistakes can still be made. Hope this helps someone. Good luck with your next book. Use my story in lieu of a copy :)