>>2103014I've been in contract with a few really beat up places and in this market, that's the only decent deals I can find. Here's what I've experienced.
First problem, many of these places are old and because of this they have "title issues" - e.g. grandpa left the home to the entire gaggle of grandbabies and you need a signature from each person to clean the sale. And each one has their hand out for the cashola. So, a place that's actually worth only a few grand now takes tens of thousands to actually buy, if you can even track down everyone that's involved.
Second problem is debt. While grandpa certainly doesn't have a mortgage on the place, he's got medical or other debt and in some cases that means a lien on the home. So again, a home that's worth a thousand bucks now will take negotiation with a third party to get things cleared up.
Third problem is the shape of the property. Even if you bought it, there's often mold, asbestos, foundation, or other expensive remediation to do that you do NOT want to do yourself for health and/or time reasons. So, make sure to come with a healthy bankroll as your bank will likely not give you a standard mortgage on it.
But it's not all bad. if you're willing to go through this all, you might get a very nice deal. Johnny and Jane Homebuyer just want someplace nice and all fixed up that they can get financing on so your competition is lower. You can also negotiate medical debt down pretty nicely if there is some on there. The latest old home I purchased was kind of like this. Bought it through my contractor friend, I knew what the issues were, I knew the costs to fix it up, and it's going to turn out to be a very sweet little investment. I'm trying to get as many of these types of places as I can since this seems to be the best deal going on a dollar-for-dollar basis.
I'll check on this thread regularly so AMA
