A few days ago, as is often the case, I walked through many homes. Now, in our market, good homes are popping out of the shelves — and generally paying more than they used to. Dangit. So I’ve been figuring out more about new properties on the market to rate them and see what’s there and what’s available.
Overall, properties are less, listed at higher prices, have more sales, and are in worse condition with more problems. #yesImightbewhining
This morning I have 5 properties on my list and started searching in the neighborhood near my house. I approached a home at the foot of a vast hill in a neighborhood with a mix of owning and renting, with homes ranging from $ 70,000 to $ 100,000. The house is listed for $ 23,000 and is owned by a bank.
Property # 1
From the outside, it seemed like I needed a new roof, yard work, and work on the deck, but there were no noticeable foundation issues.
I set foot in my house, but in REO / bank-owned properties, mold, drywall repairs, broken windows, and even outside sunlight were commonplace. A decent “bone”, as we say …, the layout was decent and the properties looked structurally nice — and it seemed to have some possibilities. ..
However, in terms of% to ARV and all-in-cost to overall value, it was fairly strict within the rules of purchase. Both were pushing the envelope. I started from there and drove a few more streets to make sure I could handle the subject and surrounding properties properly before moving on to the next road.
The next house was in a part of a town that I hadn’t bought yet.
Property # 2
It was a bungalow-style property. A beautiful brick facade in the town section with many of the properties and a fairly steep vestibule on the property. There was a drive on the side and a garage behind the parcel.
Step into the once magnificent doorway, Immediately encountered mold and old odors.. The house was cool. This is one of the things that gave me my desire to improve my neighborhood. And if the house were in a better neighborhood, I would have been able to sell in the $ 200,000 to $ 300,000 range instead of the selling price at. Range of $ 20,000. What a terrible shame.
Overall, I loved this house. Even if there is a broken window A hole with a gap in the roof, The fact that a new roof, HVAC, windows, and a complete refurbishment of the garage disaster … it was a cool house. And I really felt it. I love hardwoods and generally love old houses with such a personality. It feels great to bring them back to life and give someone a great place to live. In the meantime, buy another investment that makes us a more passive income.
I looked outside again, took a peek at my neighbors, then got into the car and headed for the next property.
As I approached the house next door, I immediately felt like I wasn’t in the part of the city I wanted to go to. Narrow street. Lots of people were in front of their place and I obviously didn’t “belong” to the neighborhood with my new car and my favorite Ray-Ban shades. Rather than that I gave them smiles, nods, or waves, so I couldn’t accurately regain a friendly atmosphere from the people..
I pulled to the side of the street as much as possible, pulled out the next GPS address, and slowly started pulling it up to the end of the street. At that moment, I decided to move on. No matter how good the numbers were, they just didn’t pass the intestinal test.
Like a slow-motion TV drama, this policeman in a marked SUV police car flew down the street, pulled sideways, and the brakes rang as he turned across the lane. Stopping from my bumper, he blocked my way.
Then he pulled out his gun. And I started screaming.
Good news: guns and screams weren’t pointed directly at me.
Bad news: He and his car were so close to me that I could reach out and barely touch him through my window.
Within 10-20 seconds, there was more than one police officer or police car. Four to five people shouted, pulled a gun, and pointed to the jeep with three to four people right behind my car.
Remind me, I pulled towards the end of the street, the police car blocks me, the police car behind me approaches me, the police car pulls behind the jeep, another police car is me Pull behind the car in front of me and then another one on the other side in front of me. All officers pull out their guns and scream for the men to leave.
Yes, that means I’m in the middle of this “change”. It’s a situation where I didn’t have to be in the middle or desire, as we might call it.
If this worked, my heart rate was gone … for example, a few beats up. I rolled the window, calmed down as much as I could, and asked the policeman in front of me if I could “depart now”.
He laughed and said, “Wait a minute.” Yeah, I laughed too. What else do you do … #besidespeemypants
right. Officers eventually pass my car and all the jeep guys are taken out of the car (I haven’t seen most of it … I bowed as much as I could get it rice field)
He tapped the trunk of the car so that the coach would putt the player after a good play and said, “Have a great day. You can go now.”
Take me to hell from here !!!
To be honest, I made a few turns, drove slowly, counted my blessings, and wondered what I was crazy about.
I know quite a few investors who own real estate in the area, and I know, maybe they have never had such an experience. But that was enough. There was also a conversation, “Do you really want to be this business?”
Of course, who am I making fun of?
Not in this neighborhood.
1. Do your homework
If not you, there are trusted people who can provide real feedback about the property in question, the properties around it, and the entire neighborhood.
Make sure you understand what you are in before you buy it. It’s much easier to drive away (if a police officer passes you) than to deal with bad homes, bad neighborhoods, bad tenants.
2. Don’t be discouraged
That’s true: we spend a lot of time looking for properties that we never buy. Or let me tell you, You should look at a lot of properties to find a good one.. And withdraw your method. And you know what you are looking for.
As in this example, the house may be in the wrong place in the town. In this particular situation, I found a place I didn’t want to be — but that doesn’t mean my real estate business was bad or my intentions weren’t good. Think of it as if you were moving to another life lesson, another learning time, another tool in another real estate toolbox.
3. Ensure safety
I thought of my kid and wife when I was sitting there hoping that the real bullets wouldn’t fly.
And believe me, I was scared from my brain that I was sitting in the middle of something irrelevant. I’m not sure if there really is anything else I could do in that situation, but overall, we need to be very vigilant.
When looking for a vacant property, be sure to look outside and check your neighbors. Does anyone scoping a house or scoping a neighborhood? Be careful.
Once inside the house, if you are alone, find out how to get out of the house. I know the exit. It’s just a matter of being careful and knowing how to take care of yourself. This isn’t just for C-class neighborhoods. It’s for a house that has been vacant for a while. Believe me … I also saw them invading.
Bring! What’s the story of your crazy police and vacant property? What else can we learn from our community here as we learn to be better investors?
Please comment below!