a house that back up to a gas station and office building

a house that back up to a gas station and office building

Member since 2019 · 20 posts · 3 votes

Hi Everyone, After listening to more pod casts than I can count this is my first post and interaction with BP. Through an aquaintance I was made aware of pocket listing. Its in a very sought after part of Maryland due to the school district and from the brief discussion I had with my friend I decided that I do want to get more information. First thing I did was map it and that's when I realized that the home sits behind a gas station and walking out the front door of the property looking about 45 degrees to the left is the back of a not so beautiful building. There is a fence and some trees blocking the gas station but even though you can't see it easily its still right there!

Now if you go further into the neighborhood its just a typical neighborhood no issues.

I personally wouldn't buy that home for me and my family but I think it will be just find for renters as it is on the less expensive end of the homes in the area and walking distance to a shopping center with a restaurant. 

My question is how much should the proximity of the gas station and back of the commercial building affect future home values and how much I should consider the deal? 

Any help is greatly appreciated

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  • Rental Property Investor · Oconomowoc, WI · Member since 2016 · 996 posts · 432 votes
    7y

    It's really hard to predict future impact on the value.   Down the road the highest and best use of the property may no longer be residential and if that's the case the building becomes a detriment to value because they have to raise it.  BUT if a company wants it bad enough they'll pay top dollar for its convenience if it allows them to expand without moving.   

    I wouldn't have any immediate concerns about getting into the deal based on the information you provided. 

  • Member since 2019 · 20 posts · 3 votes
    7y

    Thanks for the reply. I never thought to come across this situation so other than asking an Agent their opinion I figured this was the best place to pose the question.

  • Real Estate Consultant · Brighton, MI · Member since 2013 · 607 posts · 251 votes
    7y

    First-time investors often have a myopic view when considering investment choices. Price is not everything and even though it's in a good neighborhood, being next door to commercial property is a killer. 

    Remember, that at some point, you will want to sell this property. Therefore, when choosing single family residences make sure the location will not be a hinderance to you down the road and that it will appeal to both families and other investors in the future. This house, next door to a gas station is not one of those. Move on...

  • Member since 2019 · 20 posts · 3 votes
    7y

    Thanks Annette, that makes perfect sense and is why I'm apprehensive about it in the first place. At the same time I wanted to make sure that I wasn't just coming up with excuses to not make a deal. 

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