Making an Offer on Distressed Property Next Door?

[Kate Yabar]

Hi, All!

I've been analyzing properties for a few months and saving up for a down payment. I have yet to put an offer on anything because it's currently a seller's market, so inventory is way low, and prices are high. I recently had the idea of approaching my next door neighbor about his house. His property is, frankly, an eyesore and needs a lot of repairs from what I can tell. He bought it in 2014 for $165k, which is low for this neighborhood, and the property was in better condition then. I've analyzed the property and think it's a good deal for my buy and hold investment strategy (not to mention super accessible for rehabbing and conducting repairs).

He is not the friendliest human being to deal with, so I need to be careful in my approach and ensure I have my homework done ahead of time. Does anyone have wisdom to share who may have bought a property this way--- off market, without agents, inspections, etc.? My original plans included a more traditional route with players that could provide a little guidance on what to expect along the way, but I feel like I could potentially get a better deal this way if my neighbor is open to it (and possibly a better, easier deal for him too).

Any advice? Things to consider a newbie may not be thinking of? Thanks :)