2/1 Bungalow in Transitional neighborhood

[Holly Schuler]

Hello Bigger Pockets family, I am looking to invest in my first rental property and have come across a 2/1 bungalow in a transitional neighborhood, list price is $74,900. This unit is currently being rented, with tenants who want to stay on and sign a long-term lease. I viewed the property this morning and noticed that the current owner has not done much in the way of keeping up the property, there are several glaring issues (window in shower with obvious water damage, linoleum floor coming up in the kitchen area and possible lead paint issues because the house was built in 1950). I am trying to figure out what the the ARV would be but I am having trouble because the neighborhood is so mixed. Recent sales in the area range from $52,000-$152,000. I think the only thing I would want to address right away would be the bathroom/shower and lead paint. The rest I can do over time.

How can I be the most accurate in the calculations?

Would I be a bad landlord if I just kept everything the way it was and fixed these issues when the tenants move out?  

Any advice would be greatly appreciated.

[Michaela G.]

@Holly Schuler , be sure to do your own due diligence, because many wholesalers in Atlanta give bogus numbers. That's why I refuse to get onto any lists and get my own deals.

No, I'm not saying that everyone is a scammer, but that at the height of the market in the mid 2000's until the crash, GA REIA had over 3000 members and every guru came to town and sold books and seminars out the wazoo. Tons and tons of newbies and wholesalers had so many potential buyers, that regardless what they threw on the market - they found a sucker.

I see the same things starting to happen again. Some of the prices I've seen on wholesale deals from others are just crazy. The comps are a mile away or there are other circumstances why those comps sold high and not relateable . I just came across another scammer in my neighborhood, that sold turnkey properties to Canadian investors, except they were never renovated and those houses are now sitting here boarded up and investors in Canada are sitting far away. 

So, I'm just saying that you need to run your own numbers, regardless of where you get the 'deal' from.