When is a property too distressed to buy ?

[Chantal Routhier]

I’m starting my real estate journey and have mainly been buying vacant land through tax sales. I notice an upcoming sale with a lot of houses listed. So today I did a drive buy of all the houses and talked to as many neighbours as I could. One of the more promising houses I was told if filled with dangerous mold, many unsealed points (which I could see) and has a history of water damage. Vacant for 10 years.

This house along with all the others I was told the same thing again and again... don’t buy it, it’s a tear down.

So I’m wondering where do you other more experienced investors draw the line for “distressed”?

*As a note the tax sale prices are around $8000 but could get bid up.

[Ben Lapane]

I draw the line based on my experience level and the degree of exposure i put myself in by taking a deal.

For example, I don't have experience in doing ultra rehabs. Meaning my rehab experience is limited to homes with "good bones". I wouldn't want to take on a property that is more than what i have experienced UNLESS i 100% know the deal affords me to make money even if i have to rebuild it twice. If i can afford to do that i would consider doing it.