$2,500 House? - No Deal! - Posted by LK

Posted by michaela-CA on May 25, 2007 at 24:08:49:

‘What happened to michaela-ATL?’

I got rid of her. Traded her in for michaela-FL, but didn’t like that too much either, so it became michaela-CA :wink:

$2,500 House? - No Deal! - Posted by LK

Posted by LK on May 24, 2007 at 19:02:41:

No, I didn’t leave off a zero and yes it was not a deal at $2,500. I received a call from a motivated? seller that said he needed $2500 for his 4BR/2BA rental home that had been vacant for 3 mos. He had no liens or mortgages.

Naturally, I was in a rush to see this one but first I stopped off at my computer to pull comps and tax info.
I also talked to an agent in the city (pop 26,000) where the house was located (about 45 minutes from my home investing city) and gathered some additional information.

What I determined was lots are worth $2,000 in that neighborhood but nobody wants them. (So not really worth $2,000). Houses are worth $10,000-$20,000 in livable condition! A nearby house has been on the market for 775 days at $12,900. No flood plain, no toxic waste dump, no sink holes, just good plain old crime and immorality, guaranteed to keep prices down.

I never thought I would have walked away from a house that could be rehabbed on a decent size lot for $2500. As I type this I am second guessing myself. I could probably get $4,000 on ebay, or fill it up with used mattresses and rent it for $20/hour.

I think I’ll call back and offer $295 in the morning?wait, did I leave out the decimal?

ROFL - Hilarious! (nt) - Posted by JennyG

Posted by JennyG on May 28, 2007 at 20:43:11:


Re: I got one better $1 - Posted by Chris

Posted by Chris on May 25, 2007 at 12:02:01:

yup, $1 dollar it was a 2 family, actually not too bad a shape a few years back. I didn’t get it, but you’d need like 15-20k or so in rehab then it’s worth 25-35 so in the end what is the point. If you were a slum lord you could band-aid it and rent the units for $375

you made a wise decision - Posted by seldon

Posted by seldon on May 25, 2007 at 09:43:00:

properties that you described have no value to investors 99% of the time,mostly all the investor is buying is a huge liability and a little bit of grubby cash which has to be squeezed monthly from the botton dwellers that inhabit such holes.the previous post strikes home with me because just yesterday I toured 22 properties with a property manager of an owner who’s slum lord father died recently and is wanting to sell a total of 70 units with owner financing with VERY little down and cheap-cheap prices.After seeing 22 of these hovels and the people who live there I politly declined the offer to have lunch and continue the tour.Given different circumstances this would be an exelent opportunity for me but I just cant assume the lack of self respect, the risk and hard work to justify the payoff in owning properties such as this.if anyone wants these they are in an old tourist town on the New river in WV. seldonlink@yahoo.com

Re: $2,500 House? - No Deal! - Posted by IB (NJ)

Posted by IB (NJ) on May 24, 2007 at 19:51:51:

Or flip it to a rehabber/landlord who buys in that area.


Re: $2,500 House? - No Deal! - Posted by michaela-CA

Posted by michaela-CA on May 24, 2007 at 19:24:19:

Do whatever necessry to keep anyone from breaking in. bars on windows and doors.

Then you put out flyers at the local highscholl and college that you have rehearsel space for rent. $ 60/month per room. You have 4 rooms, that’s $ 240 income. You have your money out in no time and really don’t need to do any major rehab as the bands don’t care.


Alright… - Posted by RJB(MA)

Posted by RJB(MA) on May 24, 2007 at 19:18:14:

Come on…tell us where it is.


Flint? - Posted by Kristine-CA

Posted by Kristine-CA on May 24, 2007 at 19:17:43:

Let me guess…Flint, MI or…Buffalo, NY? Inquiring minds in sunny CA
want to know. :slight_smile: Kristine

Re: We Got one Free - Posted by Randall Porter

Posted by Randall Porter on May 29, 2007 at 10:36:36:

About 5 years ago, I had a motivated seller call me about a house his mother owned. It had been vacant for 10 years and had been vandalized before the city boarded it up. I drove by it a told him I had no interest in it. He called back two more times and I told him the same thing. Finally on his 4th call, he was really desperate. When I told him we wouldn’t pay anything for the house, he asked if we would just take it off his hands. He deeded it to us for $0, and we flipped it in about 4 weeks for $9k.

Re: you made a wise decision - Posted by Cypress

Posted by Cypress on May 28, 2007 at 21:37:04:

If memory serves, there is some pretty good white-water rafting on the New River though!

Re: you made a wise decision - Posted by george

Posted by george on May 28, 2007 at 17:57:24:

Right on Seldon!

I wish I could have every beginner go the board and write 100 times “Build Your Real Estate Empire with Quality Properties”.

I wasted a lot of years fooling around with “newbie sucker bait” properties. I finally made a personal rule to never buy any property that would appraise for less than FMV-20% or $100k. It then took me six years to accumulate a small fortune while doing no major rehabs.

Life is simpler and easier. Unfortunately, most beginners will find this principle hard to accept – and have to learn this lesson the hard way.

Re: $2,500 House? - No Deal! - Posted by LK

Posted by LK on May 24, 2007 at 19:58:20:

They made need to pack heat in their Tubas.

I have to admit my curiosity is killing me. I’ve got to go tour this neighborhood. Evidently the house is severely trashed and there must be several similar in the area. I think I’ll go during daylight hours.

More at 11.

Re: Alright… - Posted by LK

Posted by LK on May 24, 2007 at 19:52:11:

See “Flint” post below

Re: Flint? - Posted by LK

Posted by LK on May 24, 2007 at 19:49:47:

1 hr South of ATL

What? - Posted by michaela-CA

Posted by michaela-CA on May 24, 2007 at 20:16:07:

I can’t imagine a neighborhood 1 hour south of Atlanta being that bad? That must be around Macon?

Re: What? - Posted by Bill H

Posted by Bill H on May 24, 2007 at 21:08:38:

Sounds like a friend of mine who actually wore a flak jacket (bulletproof vest) to collect his rents.

He was as tough or tougher than the tenants…he got it on time…almost everytime.

Good Luck,
Bill H

Sorry, but having been exposed to similar experiences cannot subscribe…however…it seems a BARGAIN to me.

Send $99.95… - Posted by LK

Posted by LK on May 24, 2007 at 20:58:53:

The first ten people to purchase my newsletter, How to find houses for less than $2500.01" will also receive a free trip by yellow taxi to visit one of these rare jewels. Just $99.95 for the first ten only. I wish I could do more but the taxi will only hold ten.

I’m sorry, I always wanted to do that.

If you will send me an email, I can get you the coordinates. We may could go in together a buy a couple of blocks.

What happened to michaela-ATL?