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Updated over 6 years ago on . Most recent reply
What is my neighbors investment strategy?
Long time listener to both podcasts first time poster (so apologies if this is the wrong forum). I live in Nashville, TN. The house next door was purchased at foreclosure on December 2017 for $734,500.00 by a flipping company. The house was renovated and listed for sale at 1.5 million in July 2018. On Aug 14, 2018 it was de-listed.
Earlier this week I learned that the house was purchased by three investors. Two relatively new real estate agents and a high school teacher. They were nice but very evasive when it came to what their plans were with the property. When I pulled the county records it shows a Contract for Deed detailing out a seller financing situation. The purchase price was 1.5 million with 9% down, 7,000 a month mortgage payments and a balloon payment after 5 years. Only the school teacher is on the deed.
The house is 7,791 square feet with 5 bedrooms and 4 baths. It sits on over an acre of land.
I am trying to ascertain what if any impact this will have on the value of my adjacent property. Is normal Airbnb lucrative enough to cover that type of mortgage? I would appreciate any insight or thoughts on the above scenario.
MB