Purchased two Section 8 duplexes, side by side in Indianapolis, IN 1yr ago.

[Elliot Mendoza]

And to be honest, it was probably the worst financial mistake I've ever made in my life. I used one of the BP local sales people, and after everything was said and done, I realized, I did not do enough on my own end to minimize my own risk. In the end, this is all my own fault, but at the same time, I can't help but feel like I was taken advantage of by this company. I was the sucker on this deal.

My first mistake was trusting the inspection reports without hiring my own.

My second, was purchasing the property sight unseen. 

My third mistake, was purchasing the property only using online reports and not speaking to local RE agents, PMs and sellers.

My history thus far:

I closed on two section 8 properties late 2012, and right off the bat, I got a notice from the county that there was trash on the premise and if they weren't cleared out, I would be fined. Alright I figured, the properties were recently renovated, so I guess some left over trash is not a big deal. A few months later, tenant was complaining about a hole in her ceiling and water damage. I had to replace a roof on one of the duplexes. The original inspection report said it had roughly half life left in it, and did not mention a hole or water damage. I expected regular upkeep and maintenance, but honestly, after going through the accounting for tax season this year. Even without the roof replacement bill, I lost money all year. If it weren't for my other financial backings, these two section 8 properties (both of which cost 55k a piece), would of ruined me financially. 

The property manager stated later on in the year some choice words regarding my original seller, and how they over-priced me on the properties I purchased. And the kicker: not to expect a profit on properties like these for at least 2yrs, after I have personally taken care of all the renovations that the orignal seller supposedly took care of. 

Again, in the end, this is all on me, but I sure do feel a bit salty about it, and will no longer be using said companies services, and recommend against them whenever someone asks for an opinion.

So, let this be a lesson to those of you using online RE sellers. Do your own due diligence, see the property first hand, and check with local PMs/RE agents to see if you are receiving a fair deal to begin with.