BAD NEIGHBORS

[Olivia Tallchief]

Hello,

I have come across a pretty awesome investment opportunity. Its two MH on 2 acres being sold together. The land alone isn't easy to come by in my area. I went to do some recon of the place last night and the land and both trailers are exactly what I am looking for!! The problem is the neighbors across the street and the ones next to them. Their homes look fine but their yards resemble something of land fills! All of the other neighbors seem fine.

Does this sound like a deal breaker? If it wasn't for the neighbors I would be sold already. Any input would be very helpful!!

Thanks!

[Adam Johnson]

No matter what you do or try to do, you will never be able to improve your neighbor's property.  There are 2 options, walk away, or purchase low enough so that you can sell or rent at a discount to account for the neighbors.

I bought a property several years ago to rehab/flip.  The property next door was a wreck (rural property, only 1 neighbor).  Nothing I could do to fix the neighbor's house/farm, though.  So instead of rehabbing it, I sold it as a handyman special and let the end user buy it at a wholesale price and do the work themselves.  They won because it needed mainly cosmetics and they could live in it while working on it, so they bought a bargain for themselves.  I won because I didn't tie up too much money fixing the property and raising my price point too high.  Instead, I wholesaled it to the end user and still made money.  However, I couldn't have pulled that off and made a profit if I had paid too much when I bought it.

Leave yourself extra "cushion", knowing that you won't be able to sell or rent at market prices, you will have to likely lower your price to do something with it. Take that into consideration when you decide how much to offer.  Doesn't have to be a deal breaker (but it might be, I don't know enough about the area), just need to price accordingly.