Your thoughts on this property?

There are a few guys who specialize in buying those R2 lots in CDM, tearing down the existing, building two new condos, and then selling them for a profit. It occurs to me, why have they not bought this lot? Have I built enough sucessful spec homes that I could compete with the local spec builders?

Isn't Marigold a busy street?
 
Being across the street from the fire station doesn't seem that desireable (noise). Notice that the neighboring properties (including the eyesore of a public library), are a lot of original construction homes.
 
Capital,

I noticed those two things. You would think that for those two reason that the price might come down a little bit. But if you look around, that price is pretty similar to regular houses or even units in the area, but it is listed as a "fixer upper". For that price, you would already be pricing yourself out of the market. While there are homes in the EXPENSIVE range there, you'd certainly be catering to a very select clientele and as such, may not be able to sell it in timely fashion (hat Tip to Awgee).
 
Did you notice they say the rental income is only $3k.

Maybe my math is way off but unless you put down a HUGE down payment (680k) this is no way near having a positive cash flow.

What investor would buy this property at this price?
 
halfnote19 said:
Did you notice they say the rental income is only $3k.

Maybe my math is way off but unless you put down a HUGE down payment (680k) this is no way near having a positive cash flow.

What investor would buy this property at this price?
Click to expand...

Well if you look at the comps in the area, for rent, the MAXIMUM rental income for this unit tops out at around 800k in home value. When I looked at it, it needed quite alot of work. My best guess is about 70-100k to clean things up and bring the rentals up to code.

So around 680 seems like a good selling price. Unfortunately I think the price difference is SO far from there, that it is a no go.

Somebody might purchase it for a home though.

-bix
 
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