IS THERE ANY MONEY IN THIS DEAL? - Posted by CM
Posted by CM on September 24, 2003 at 18:09:47:
GOT a call from a friend who father has 2 junker properties in a bad area.
the properties were given to him and have just been sitting for 2 -3 years. he dont do real estate and just wants to get rid of them (1k each =2k) befor they get vandalized more.
the junkies in the area broke in and gutted and stole anything of value already.
the area comps go for 25-35k each, and he will basicly give me both houses if i pay the back water,garbage,and tax bill (total $6500 to bring both current)
both are free and clear but will cost 10-15k each (for contractors to fix each one.
he wants 1k for each house = $2000
bring both bills current =$6500
fix both houses =$25000
the market value when fixed up is 25-35k each.
so thats 60-70k retail.
i dont have that much cash 2K but i know that the city has programs for bad area repair. or i can try to do a quick flip, but i dont know any rehab investors yet. (so i dont know if they would even work that area.)
i know there is a profit but is it worth the risk?
there are home owners in the ares but it has another 2 junkers down the street.
should i pass or try to profit?