Tell Me What You Guys Think of This (Example Only)

[Account Closed]

As an exercise, I want to discuss this property I saw online.  I hope I'm not violating any rules.  I'm not the seller, not trying to get business, etc.  This is strictly so I can see if some of my creative/visionary/etc ways of looking at things are actually just nuts.

So the property is 5830 State Highway 53, Temple, TX, Temple, TX 76501.  Check it out on your favorite online listing site.

So when I ran the numbers, it turns out it is a horrible, horrible deal.  But that's actually not what I want to get feedback on.  I want feedback on such things as: would you ever buy property like this on a main road and which is out of the town limits?  I'll explain later why it caught my eye a little bit at first and tell me if I'm out of my mind.

It's a horrible deal at the current price even if you didn't care that it is on a highway and in the middle of nowhere.  When you look up the tax info, it is only appraised at $27k.  I know, I know, tax appraisal and market value are very different.  But usually there is a much smaller difference than this.  $27k vs $90k is insane.  Then you run the numbers.  The agent said each unit is paying $500 in rent for a total of $1000 a month.  Put in all the usual expenses and assume just from the pictures that a good amount of repairs will be necessary, and your cash flow is very negative at the asking price.  Again, that ignores the horrible location which I would think would make vacancy rates extremely high and depress rents no matter what you do with the property.

Okay, so why did I ever even look at it?  I'm trying to find diamonds in the rough.  Properties that no one else wants but which I think I can make work somehow.  The agent says in this location I can build as many small houses as I want on the lot.  The lot looks like it could hold maybe two more small houses.  I'm interested in the idea of building my own small rentals because it seems like land is easier for someone like me to get than properties that are already good rentals.  I was thinking maybe I could put up a sound fence and some trees along the road, and do some other improvements.  Maybe be able to get a little higher rent.

I know I didn't write this particular post very well.  So to try to put a bow on it: just give me your thoughts on this property and tell me why you would or wouldn't ever consider it at any price.  Is this something you'd have any interest in at the right price or would you move right past it without a second thought?  Your answer will add to my knowledge.  Thanks.