Posted by Berno on June 01, 2006 at 14:34:54:
Phil is correct. I would say that there are better deals to be had by folks new to REI. This sounds like a HUGE undertaking for rookies and zoning, setbacks, construction and holding costs, etc are things that can’t be overlooked.
How much for property? - Posted by Jazzb1
Posted by Jazzb1 on May 31, 2006 at 22:01:32:
Hi,
My husband and I are new to this business and we are looking to buy properties. My husband found a property with a beautiful view in a neighborhood that is on the edge of a rundown part of town. The homes in this area although older are kept up quite nicely.
The house my husband is looking at is totally in disrepair. The realestate agent told me that the owner said there is nothing worth saving. It sits on a .14 acre size lot and has a lot of equal size that the owner wants to sell with it.
The city values each lot at $13,090.00 And the home is valued at $57,820.00 It has a 3 car garage in the back that is barely standing.
I think we would have to remove both the house and the garage because the agent doesn’t even want to attempt to walk through it because it is unsafe.
The owner has this property listed for $178,000 – this property has been sitting in this abandoned state for at least 5 years. I feel this is way too much to pay for this property but I do see the beauty of it because of it’s view – it has a beautiful unobstructed view of a mountain and you get to see the sunset over it daily. This will stay this way because the land across from it is designated wetlands and has a pond on it.
Would it be worth it to try and get this property? My husband is thinking of getting it and putting a nice condo unit - 3 condos - and selling them.
The house that sits on it now is a 2 family.
Thanks for any advice
Jazz
Re: How much for property? - Posted by phil fernandez
Posted by phil fernandez on June 01, 2006 at 11:20:52:
You are the one that will have to determine what the particular property is worth. I don’t live or invest in your town so I have no idea of values. This is not meant to be harsh, but before investing you will have to know values in your area like the back of your hand. Make yourself the expert in your marketplace on what values are. Then and only then will you know if you have a good deal or not.
Another issue you will have to address is what it will cost to tear down and disposal costs of the garage/barn. I just tore down a small barn and it cost me close to $10,000 for the tear down and dump fees for the debris. You will want to get estimates in your area for this.
As far as building 3 condos on the lot, what about zoning, setbacks, curb cuts, how much of the lot will be allowed for the footprint of the condos etc. Are you in an area that will be tough to build, ( ie green sneaker tree huggers on the planning boards.) All things to consider.
Assessed value has little or nothing to do with fair market value. Assessed values are for tax purposes only.
Again not trying to be harsh, but you will want to ch eck things out further before proceeding. Good luck.
Re: How much for property? - Posted by Mark (SDCA)
Posted by Mark (SDCA) on June 02, 2006 at 10:25:25:
I agree with all that Phil said. And I’ll add one more.
Do you want to be a builder? Is that how you want to get started. It seems like a lot to bite off when you are just getting started.
GL
Mark
Re: How much for property? - Posted by Jazzb1
Posted by Jazzb1 on June 01, 2006 at 20:58:19:
Thanks Phil for the information. I don’t consider it to be harsh at all. You are just telling it like it is. I would much rather hear it now than to be paying for it later. This is what I was hoping I would get from the board.