First Potential Step into the Real Estate World

[Matthew O'Dell]

My name is Matt, as you will notice in this post I am clearly new to Real Estate and this website. I just found BP approximately 3 weeks ago. I have been thinking about buying to rent or flipping for over a decade. I have been listening to audio books, podcasts, YouTube and searching the web for ideas and answers to my questions. I hope that someone here might be able to give me some advice and possibly answer some of my questions.

I feel like I am at a point that if I am actually going to get into this I need some advice from others experiences. I know a handful of people in my area that could potentially be helpful in learning or helping with my real estate endeavor. I have passively reached out by offering to help with their jobs or offer funds for any of their projects but nobody has seemed interested, but honestly nobody that I know is really doing what I want to do. 

So to my specific situation, there is a duplex that I have passed on the way to my work for years. It is clearly vacant, and has been. After listening to the BP podcasts from episode one I decided that this could be a potential opportunity for me. The problem is that after some research if found that the owner of the property lives in California. They purchased the property in 1995 but after calling a local utility company it seems that nobody has actually lived in either side for the last 14 years. The taxes have been paid every year and are current. The dwelling is on a .61 acre parcel with another parcel that is land locked behind the dwelling. Together the total property is 1.306 acres. 

From what I can tell the dwelling needs a new roof, front and back doors, new drywall, fixtures, windows, landscaping. After calling the power company it also needs a "new construction" estimator to set up power. It does have carports on both sides but in Utah I think a garage is necessary. From what I can see from the road the foundation looks fine (no cracks or sloping).

Now my questions:

1. What would the best way be to contact the owner and how would I propose to him that I am interested in his property? I only have a mailing address so I suppose a letter would be my only option?

2. Would it make sense to offer my help to rehab the property as a partner or just see if he would consider selling outright?

3. With this potentially being my first real estate project(other than my personal residence) does the condition of the home and the circumstances surrounding the out of state owner be something I should just avoid outright?

I am 33, have a family of three with one on the way. I have a decent job that I would LOVE to replace someday so I can spend time coaching my children in all their sports. I have some experience with minor construction while finishing the basement in my home i.e. drywall, some plumbing, some electrical, framing and tiling. I have little cash on hand, less than 10K. I have approximately 150k in equity in my house but my wife desperately wants to get out of our current home; we are outgrowing and the schools/neighborhood are not the best. So part of that needs to be part of a down payment on a new residence. I want to hire a PM for the house we are currently in so I can focus on new properties, my real job, and my children. I would eventually like to get into the BRRRR method for short and long term rentals but I feel like I would have to be more aggressive in doing that than I might currently have the confidence for.

Thank you all in advance for spending the time reading this post!

-Matt O