First Big Mistake in Real Estate Investing - What to Do?

[Jacob Tudor]

Hello all.Since first getting involved and educated in real estate investing, I have consistently heard that mistakes will be made, well we made our first one and I wanted to put it out to BP and get suggestions of how best to dig out of this mess.We have been investing in Southeast, MI.I know, I know, insert jokes here.Recently, we cash purchased a 2/1.5 home with a garage for 22.5K, about half of what the seller was asking.The seller was an estate of a family member that lived in the home and recently passed away.We were aware the front concreate porch, was pulling away the home and the design of the roof connected to the front porch.We knew we would need to repair/replace the front porch and we set about 20K for repairs.We were also aware that the home had lead based paint.

We got quotes for the porch (15K) for the porch and getting the lead paint removed and repainting the home (4.2K).We also got a quote for siding which was 19K.This was obviously over our anticipated budget.

We realize now that we made a mistake buying the house because the area we bought the home in is flat or slightly above flat growth.If you were in this position what would you do?We don't have the money to conduct all the repairs and honestly don't think it would be worth doing. I look forward to your advice. Feel free to send a priviate email.

Jacob