A condo that will not sell - Norcross, GA

[Rashid S.]

Hi Guys,

My first post here! I have been flipping property for just about a year with a business partner who has been in it for a couple of years in the greater atlanta area... and funny that i have made a good run so far on other properties...except the first condo that we bought together.

We are all in in that condo at about 65k right now (20k in rehab costs...new carpet/paint/kitchen/appliances/new basement room)...our initial CMAs suggested that condo in the area would be 70-75k...we went in a little overboard with the rehabs with the thought we could recoup with a better rehab. We did close the two story foyer to extend the living area resulting in this condo being the largest 3/3 in the neighborhood... our list is at 87k currently. What blindsided us was that HOA is relatively high in this s/d... at 225/mo.

That results in this neighboorhood not being FHA approved.

Property has been on MLS since Sep '14 - started at 92k, dropped to 89k in dec and 87k in feb. my listing agent has lightly staged it...feedback has been great with very minor and individualized comments (paint line showing in corner/dont like neighboorhood etc). The neighborhood actually is pretty decent for norcross and sits in front of a park, good neighbors and tenants so i cannot fault that.

i dont want to offer seller financing (i want cash out), not looking to turn this into a rental due to high HOA..just need some creative ingenious ideas on what else i can do to find a buyer. This property is on MLS and craigslist.

Thanks!

[Joel Owens]

Why not just dump it to break even and move on??

Are condo's flat, going up, going down in value and by what percent a month??

You have done minor reductions so far so still might be behind the pricing curve. Having a property not be financeable with one of the big loans buyers use in that range is a huge negative.

225 a month is about 40,000 more in a mortgage payment equivalent so it is a lot in buyers eyes.

For instance what can buyers purchase for 127,000 and not have HOA fees and the same total payment?? How did you not know the HOA wasn't 225 a month before you bought it to rehab??

comps "would be 70-75k"

Buyers want the nicest place in the area for MARKET value or less not above market value. Investors over improving for something and saying pay more than it is worth because we overspent doesn't fly. It likely wouldn't appraise anyway.

How about marketing it to a foreign cash investor buyer?? You could also up your co-op to the selling brokers if it's 3% make it 4 or 5%.

Sounds like you just need to count it as a loser and move on because better properties are probably out there to put energy into. Not every one is a winner.