2nd Property in Birmingham

[Troy Pugeda]

Hi - I was hoping to heed some advice from some of the amazing folks here.

I am in the process of buying my 2nd property in Birmingham (Center Point). The listing says "Turn Key" and was Posted for $119K. I offered $107K and it was accepted. Now upon actually visiting the property (flew to BHM) and getting an inspection, there were quite a few issues:

1) strong mildew smell. Inspector says the home was just not getting proper air flow ? 

2) half the outlets don't have GFCI

3) need to have the ceiling checked for Asbestos

4) minor water leak between the car port and wall of the house. 

The house has been on the market for 200 days. Per the listing agent it was because the previous buyer's financing fell through.

My agent doesnt think I should proceed in purchasing this as she believes it needs a lot of repairs and is in an overall not in a good neighborhood. She also states I may spend much more repairing it.

My potential Property Manager on the other hand feels confident that he can rent it out. Basically just close the deal and hand him the keys and he will take care of everything. The repairs are minor. This PM was recommended by another investor.

I decided to counter offer for $95K. But at this point, should I take this deal and risk it ? Thoughts ? 

[Micah Phoenix]

As a realtor near the Birmingham area I don't recommend investing in center point at all. Especially since the school systems are 1/10 on the education scale and the crime in that area is the one of the highest in the city. If you are trying to get some properties in Birmingham, I would pick something near UAB (preferably a section 8 property) since it's safer and near a highly populated college with housing demand from the increasing number of college students. If you'd like to further a conversation with me regarding properties in or near Birmingham please give me a call or shoot me a text. (You can find my contact information on my account)