Sometimes the neighborhood makes it easy to pass.. (my crazy day)

[Greg Moritz]

Hey BP!

Had an interesting experience today that I thought you might enjoy hearing about. The kind of thing I could never have imagined before I started doing this. So, my favorite agent called me up about a quad.  In pretty rough shape and needs a rehab, but the numbers look great. On sale for $80k. Likely rent for $700-$750 per unit once it's fixed up.

So, we go to check it out and everything about the property is about as expected. Full rehab. Contractor we bring with us says about $60k worth of work. I assume $80k, because I like to be pessimistic with my numbers. So, everything so far looks good. 2800 month rent on 160k, all in, using very conservative numbers.  Not mind blowingly good, but not bad at all IMO.  

There's just one thing. The neighborhood. Now, I'm used to buying C, C- properties but this is something else. Across the street and down a couple houses there's about 6 or 7 people gathered hanging out. And it is loud. Lots of yelling. First, the dog escapes and this admittedly adorable pitbull starts running around the neighborhood. Followed by his owner, a mid-20s girl who seems to be more than a bit high. So, while that's going on I hear more screaming from that gathering. That's when one of the neighbors picks up a giant wooden board and just starts smashing the windshield of a car parked across the street. Over and over he just winds up and slams the board into it.

Before we leave, one of the women from that house comes up and asks us about the property. In the process of asking about the rent she mentions that might not want to live in our place because she doesn't like having to pay her bills...

So... yeah. Passed on this one even with the great numbers. :)