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Updated almost 5 years ago on .

User Stats

63
Posts
28
Votes
Christa S Rickard
  • Tampa, FL
28
Votes |
63
Posts

Sinkhole question for FL investors

Christa S Rickard
  • Tampa, FL
Posted

I found a sinkhole duplex that has been filled/fixed. Grout was poured and the foundation stabilized/fixed (structural and engineering documents for both provided). Comparable rents in that area range from $950-$1150 depending on upgrades/amenities. The property is currently renting for $800/unit but, based on upgrades/amenities, should be at the $950 mark. The sinkhole was filled within the past year. The units were upgraded after the structure was fixed/stabilized, so also in the past year. 

The seller states the rents are below market and can be brought up quickly. If that were the case, wouldn't they have rented both units at current market rents now instead of $150 lower? Or do sinkhole homes typically rent for less than non-sinkhole homes? I know sale prices tend to be lower for sinkhole homes but hadn't considered rents could be lower as well until I found this property.

I'm probably going to pass on this but wanted to check with what others have experienced with this situation.