All Forum Posts by: John M.

My impression is that it is priced high for the neighborhood. You might eventually get a buyer at your price, but you need to weigh that against the potential carrying costs. People will look at Zillow and see that it is priced higher than any comparable property on the street and that you paid 95 for it. I would think that even if you spent 100k on the rehab, you're still making a killing...

There don't appear to be a lot of recent sales in the area and it is one of those places where you've got $130k houses mixed in with $1M+ houses. A good local agent would be your best asset in determining a price. This is a case where you're probably better off giving up 3-4% commission to have an agent helping you. 

Also, keep in mind that the buyer pool for homes like this is much smaller than it is for your typical starter home in a suburban neighborhood.

@Jason Branum, it does sound like you might be biting off more than you're ready to chew and I advise extreme caution since a mistake with a deal this size could hurt you very bad.

One thing you should ask yourself is "Why have I gotten this opportunity?" Be sure it isn't because the seller's team thinks you're inexperienced and willing to over pay.

After you look at the numbers, if you realize the deal doesn't cash flow positive, then instead of giving up you could figure out a price that would work for you and modify your offer.

Welcome @James Blakeney

@Michael G., being out of the area you really need a good property manager dealing with that king of stuff locally. I understand you've been burned by a bad property manager, but you're probably better off trying to find a better property manager than trying to manage it from afar. The exception is if you can find a really good local handyman that you trust and you're willing to micro-manage from afar. 

Sorry I can't give you a solid recommendation, but I'd be happy to help if you ever need me to drive by a local property an give you a report on it's apparent condition or status.

@Anna Watkins, if it's primarily the property and not the existing dwelling that has value to you, consider getting insurance that covers you for liability without worrying to much about covering the dwelling. Unless you're financing the property, there's no reason you need to worry too much about casualties to the dwelling.

Can anybody tell me how to identify agents that have listed a property in the past but is not currently on the market? For example, I looked up a property that I was interested in on Zillow, and the price history indicates that it was listed on the mls last year, but there is no info on the agent/brokerage. Searching the property on the MLS doesn't pull any info.

@Daniel Cruz, I'm of the opinion that you live in a good rental market, and I've even heard you can buy tk here but I don't have any first-hand knowledge. Maybe consider buying closer to home next time?

@Zachary Baldwin, the best way, IMO, is to knock on the door (assuming the property is occupied). This also allows you to get a better look at the property and gauge the attitude of the owner (if they are the occupant). Otherwise, look up the owner on the TN assessors website (http://www.assessment.cot.tn.gov/RE_Assessment/), find their phone number (on white pages or however) and give them a call. Also check for a mailing address associated with the property records that is not the property address (as would be the case with NOO), to send a letter to...

@Frank Jiang, on the other hand if you're not really willing to go higher and you offered a decent price, you may still get it if nobody else bids online. Be aware though, there have been reports of apparent shill bidding on that site (e.g.: somebody gets outbid, but then gets contacted and told they were the high bidder -- you can find more info searching the forums on BP). Is there something in the sales contract that lets them easily get away with auctioning it?

Good luck, and let us know how it plays out.

Depends on how much time you have and the situation, of course. If the owners are still around and you've got the time, it may be possible to negotiate a short sale. However, many times the owners have disappeared and there would be no way to get clear title except via the foreclosure auction.