Seeking advice on Investment Strategy

[Gerald Donaire]

Hey BiggerPockets community!

I have received a lead from a motivated seller. I am trying to figure out what kind of investment strategy I should go about this deal. (Stockton, Ca)

It’s a duplex with tenants occupying both units located in a bad quality neighborhood. They do not want to hassle with brokers so they would like to sell off-market, property has been paid off so I would assume they have equity built. Seller has mentioned both units are outdated and poor condition. We have set a time and date to view the property this weekend.

I do have a lender and realtor so financing and legal contracting is not an issue but I have not yet come to them for advice. 

My question is:

How could I generate profit with this off-market duplex in a bad quality neighborhood?

Thank you in advance for your help!

Gerald Donaire

[Steven Ko]

@Gerald Donaire what area are you asking for help in? Running the numbers? A short cut to profits? One thing you can never fix is location. And with that, you’ll attract certain types of tenant. And that certain tenant might trash your place/sell drugs/throw parties. There’s got to be a reason why the current landlord just wants to get rid of it. The numbers might look good but think about the headache you’ll take on for $200 a month. One repair might kill your cash flow for the year. Nothing is easy and simply asking how can I be rich wont get you much on here.