I have written about location problems before with House #46. You have not heard about house #34 yet though, because I wanted to wait for it to sell before I wrote about it.
This house probably has every location problem real estate can:
Check out the areal view for this one.
The good news is we sold it yesterday. The Buyer is an FHA buyer who is really excited about the house.
The house does have some positives:
An agent that has sold me a lot of houses called and said he got this listing from another agent after it did sell. I looked at it, encountered 3 homeless man living inside and wasn’t real excited about buying it. We did see the positives and gave him a number about 15% off his list price and said we would take it at that price.
Two weeks later he called and said the bank accepted your offer and we can open escrow. I didn’t know if I should be excited or not. The good news is, I would be okay putting this in the rental pool if I had too.
Once we got it fixed up we listed it really high (like we always do, especially when the market was hotter) and initially we got a pretty solid offer. Well it turns out that Buyer wasn’t interested and we let it sit for a while. Eventually, I started lowing the price $5,000/week and about 90 days ago we go an offer 12% under our original list price.
The escrow turned out to be once of those nightmare ones that took over 90 days to close, but finally yesterday we got it closed. This deal isn’t a home run but we made a bit of money. I am really surprised that it didn’t sell higher, but it is really hard to determine what affect location problems have on Buyer’s. We ended up getting a medium sized profit, but quite a bit under our expectations as we owned the property just over 200 days.
If you’re a newer investor I would stay very far away from stuff like this. They seem to always have additional challenges.