Please don't start a feeding frenzy

[Sam Teachenor]

I'm looking for my first deal and came across a property that looked good but has some obstacles I don't want to deal with. It is an 1100 square foot 2 story in Avalon, Ca (thats on Catalina Island) It was built in 1920ish. It is an REO I found through the FDIC web site. The asking price is $470,000. The recent comps are the same age, smaller (600 square feet), and sold for $500,000. based on price per square foot this place should be worth about $670,000.

I've been told that there are a few contractors who kind of run a monopoly on repairs on the island and you need to bring in your own materials, but the repair work looked minimal. Rental rates are seasonal and there is a management Co that could take care of renting it but I don't know if they gouge. I don't have the resources to make this deal work now, but maybe it could be a winner for someone.

You should find it if you do an MLS search but I would not expect it to last.