Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 9 years ago on . Most recent reply

User Stats

296
Posts
175
Votes
Stephen Hundley
  • Realtor
  • Lafayette, LA
175
Votes |
296
Posts

How I bought a home in the middle of town for $10,000

Stephen Hundley
  • Realtor
  • Lafayette, LA
Posted

While on my way to a listing appointment last week, I rode around the neighborhood trying to kill some time. I noticed a run down house two houses down from the home I would be listing and I was very intrigued. The grass was overgrown and there was a hole in the roof. This was exactly the type of house I was looking for. The home is located in an established neighborhood right in the middle of town on a dead end street.

I immediately pulled up the tax assessor on my phone and located where the taxes are being paid. The next day around lunch time I knocked on the owner's door and asked if she would consider selling the run down home. Her eyes lit up and she said, "Why yes but I just didn't think anyone would ever want it." Cha ching.

I asked her permission to go inside the house and she said that was fine. Come to find out she was a hoarder like you see on TV. It looked like stuff had piled up in there for 30 years. The roof was caving in and the flooring was rotting away.

I went back to her home the next day and made an offer of the assessed value minus the cost to demolish the house and she accepted my first offer of $10,000. I emailed the contract to my attorney and we closed 2 days later.

The really neat thing about this home and lot is it's actually 3 lots. The house sits on a 75x150 lot but the plat shows it as 3 25x150 lots. The city code today wouldn't allow a home to be built on such a small lot but because this neighborhood is so old it's grandfathered in. So my plans are to build a 3/2 1,500sqft shotgun house and move into it myself. Once that's complete I will build 2 more of the exact same type homes and keep them as long term rentals.

I've already had an investor offer me $50,000 for the property but I politely turned it down. I'm expecting to have $120,000 in equity once I'm done with the 3 houses not to mention what I will be receiving from tenants in rent!

I've had to knock on many doors before finally getting a great deal but it was all completely worth it! I'll be sure to post pics as the progress happens!

Most Popular Reply

User Stats

916
Posts
190
Votes
Chaz Reid
  • Investor
  • Fayetteville, NC
190
Votes |
916
Posts
Chaz Reid
  • Investor
  • Fayetteville, NC
Replied

That's awesome @Stephen Hundley

Just from sitting here looking at your pictures, I want to take another shower now!

Loading replies...