Should I even bother with this

[Tina D.]

Went and looked at a property listed on the MLS yesterday. It is a triplex in a hot hot neighborhood, and is fully rented. Cosmetically, it needs lots of updating, and it doesn't have some standard amenities like parking and central air that most expect in this neighborhood. However, the current rent reflects that and with these improvements, could definitely be raised.

Problem is, it is overpriced. It has been listed for a couple of months now and not selling and here is what I know:

It was purchased in 4 or 5 months ago as a short sale for 150k

The owner put mayyybe 15K into fixing a few things like electric, the porch, etc. No improvements inside.

They listed it in June for 280k ????????

It has since dropped to 255k

Current rental income is about 30k a year.

I am so confused as to why this would be listed so high and what this investors strategy is. My agent and I looked at comps and current condition should not really sell for more than 180k or so. With HVAC, parking, and kitchen/bath updates, it would easily sell for current price. I ran the numbers and it would have very good cash flow IF I could get it at 180k or so. And there is opportunity to improve the property to increase value and rent. 

So...thoughts on the deal? Think it could be good? Strategy to get it if so????

[Jimmy Chou]

I wouldn't bother looking at it. There's all kinds of uneducated and/or unethical investors out there. Their strategy could be as simple as "I just gotta wait until someone dumb enough to come along and buy this off me". That has nothing to do with you though. If you really want an attempt at this property just put in an blind offer at what you think it's worth (or even lower so you got some room to negotiate). If the seller is willing to negotiate, maybe go look at it then. Nothing will save you from paying too much for a property. If the realtor comps the property at 180, just ask them to find you something similar at the right price. Good luck!