Hi Sean, Dvorah, and all,
The screwed buyer Dvorah referred to is all very real. And unfortunately, this the the inaugural real estate investment.
The purchase was very recent, so no time for the market to put him underwater. It was underwater from the start.
I've walked through the house with the buyer. It is missing key components represented to the buyer as being present. Several minor items; wiring, plumbing, furnace, water heater, a bedroom, just to name a few. It's obvious they have been missing for an extended period of time.
The buyers multiple calls to your company are getting nowhere. They refuse to allow him to talk to "the boss", and continue to give him the runaround. In your post you stated you were giving your direct contact info. Of course you could actually post the information as you stated you were, and he could contact you directly, avoid the gatekeepers, and get this resolved.
And Dvorah is right, the house was significantly overpriced based on actual comps of actual sales for comparable houses in that neighborhood.
Yes it is in a gang area, and half the nearby houses boarded up. However, it is in area with other rentals, but will be hard to rent with the house next door being wide open and used by the drug crowd.
It does need a lot of rehab. It was probably 7-8K before most the key components were stolen. Now it is much more.
We could discuss prices, rehabs, neighbors, etc all day long, and what is good or not.
Here's the core issue. You sold a property to uneducated, inexperienced, first-time buyer. You represented it to be in a specific condition, with specific components. He trusted you. The property was not as represented. You violated that trust.
What are you going to do to fix it?
Darrin
Landlord, Rehabber, Contractor.
BTW, We consider 19% ROI to be a mediocre deal in our market, not "Amazing"
