All Forum Posts by: Hope S.

Has anyone ever acquired a severely distressed property (long neglected water damage, structural damage, mold, hoarders (and cat poop)) and lived to tell about it?   We are so shocked by the state of a recently acquired property that we're considering re-selling it as-is and chalking it up as lesson learned.  We acquired it by tax sale - which is why we did not know the true state of things until after we owned it.   We have a service master guy coming out to give us a scope of work, which may very quickly answer our question.   I'm just looking for some experiences with basically condemned buildings, which are either brought back to life or perhaps replaced with a manufactured duplex or similar?   Experiences good and bad welcome.   Thank you.

@Russell Brazil I will certainly see those things at my next property, but it was not something that jumped out at me on our first visit.   The learning curve is steep with old properties.    

@Jason Hirko the sellers inherited the property and likely have no clue how to properly maintain the building, or that this is why its not selling (despite great numbers).   

thank you both for your input.   We're likely going to just walk away.  

Thank you for your response Charlie, yes this is the most prudent approach.  

Looking for some advice on negotiation on price after a terrible inspection.   I found a 3 unit with a great return, in a great location.  I love everything about the place and the price was right given the rental income and expenses.  The problems arose when we inspected the building and found some major deferred maintenance issues.  Its a building from the 1850s, and it looks like it will require all new siding, major masonry work and support beam replacement in the basement.   

I would normally just walk away, but the location of this place is unbeatable.   

So my question is, in this situation, where I'd still like to own the property, is it kosher to now knock 50k off our offer for the items listed above (which might not cover it all)?    Anyone do this with any luck?

The place was first listed over a year ago and then relisted this spring, price only budging downward one time by5k.   

Should we run for the hills or just lower our offer and see if it sticks?  

Hello, I am a new member located in Maine.  I am looking into some real estate investments in my region, and I'm a bit stuck on return goals.   I already own a 3 Unit that I picked up for 169k, and it brings in 2575 in rents, so it passes the 1% rule and I believe even when you dig down on expenses it has a great return.    So now I'm eager to add another property.  But nothing in the region meets what the suggested return of BP seems to be (at least $100 per month in cash flow per unit, or 10% cash on cash return - this is from the youtube video "How I quickly analyze a rental property for cash flow."  

So my question is, do I have to wait to find these numbers, or should I feel comfortable with stats that are not as great?  i.e., do the majority of investors look for this 10% cash on cash number or is that just something to aspire to?   

thanks for any insights!