How to Analyze Vacant Property?

[Jerica S Buchanan]

Hello,

I live in Grand Rapids, MI. The property next door to me has been vacant for about two years.  Not sure what’s going on with the property but I would like to find more out as I am interested in possibly figuring out a way to make it my first investment property. Seems like it’s just been abandoned. It would definitely be nice to have my first rental property right next door to me. I can tell from the outside it definitely needs some work. I was advised to analyze the property and get an estimate for a full gut rehab. The property is currently not for sale so not sure how to go about seeing if the property is worth potentially investing in.

I found the owners name and a phone number but just not sure how to approach the situation. I don’t have a lot of cash. I have the equity in my home that I was thinking about as a resource or possibly finding funding some other way if the owner is even interested in letting the property go. The ideal situation would be to keep my current home as my primary residence and rent out the property next door. I’m still a fish out of water so I don’t know where to begin. What do you think about this situation? Approaching the owner? My options if the owner is willing to sell? 

Thanks for your help!