BRRRR'ing Next to a Vacant Property

[Cassandra Sifford]

I'm looking to seller finance this SF locally to BRRRR. Numbers are pretty good...

- Purchase price: $32k

- Down payment: $10k

- Renovation: $30k?

- ARV: $140K

- Rent Potential: $1250-$1300

The issue is the property next door is vacant and in bad shape. Its apart of a city program that allows OO or investors to buy them for $2k. The reno cost is usually so high that they aren't worth buying. My concern is the hit on the refi, continued deterioration of the vacant possibly damaging my property and finding a great teant who won't mind living next to the neighborhood eye sore, just to make a few.

Does anyone have any experience with vacants next to your rentals or insight on the appraisal and what it could look like for my refi? Im on the fence and am not sure what to do...