Bad neighbors worth investing?

[Peter Bui]

Hey guys ! Quick question: can having a trashy(hoarder) or bad neighbor make your house appraised for a lower price ? Agent just contacted me a house in that can sell for 1.1 million (according to comps) but seller has to sell because of a bad neighbor. Seller wants to sell for around 700K. Also HOA fee of 110 Hypothetically if I can cash flow $700 a month, is this property worth to pursue with a 5% ROI in Orange County? Thanks

[Thomas S.]

You should be viewing the bad neighbour as a major plus. Leverage the HOA and the municipality to force the bad neighbour out if you buy. You could then also profit from purchasing their property as well. That would be my goal.

If the seller is forced to list at 700K I would be making an offer at 600K. At that value I would make sure the neighbour was history.