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Location: When you take flak it means you are on target
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OK, need some advice. I have a small house in a bad neighborhood that I bought as a rental but ended up living in. The neighborhood is not quite a war zone, but think dead cars in about every fifteenth yard, weeds you could lose your way in, 1960's mobile homes, many in disrepair. Drugs, beater cars, a lot of beaten people. City takes minimal action to clean area up, I think it will continue to decline for forseeable future. A lot of vacant properties and old trailers.
So, here's my dilema. Renovated to move in ready condition and exposed to market will sell for $75-95k though similar model on next block has languished at $93k for many months.
House next door on market, HUD owned at $65k, needs similar renos. Local comps are mobiles on lots, or site built of similar, 1960's vintage. Mobiles about $35-65k, stick going for $55-95k.
We paid $42k have about $50k in it at this point. Total needed renos about $9 -15k. Puts us at $60-65k.
Got a cash offer from a neighbor for $60k as she sits, no contingencies. I think I can get them up to $62.5.
Would you grab the money and run, or spend more, do the reno and hope to sell higher?
Grab the money, run and DON'T look back. MAKE SURE BUYER PAYS ALL CLOSING COSTS if that is an option in your area!
I have an inherited duplex {2brs each side, identical reverse floor plans} in a bad neighborhood...was a nice neighborhood when My G-ma built it, at the edge of town, lots of vacant land around. But then they built public housing on the vacant lots across the street, thugs, drugs, dregs of society from the nearby large city started moving in.
Now, since it is out of state {in the south}, we have to have a property manager manage it. Some years we make some OK money, but only if both sides are rented out. They are usually section 8 housing people, and the real estate company/management team doesn't always make sure both sides are rented. Even some of the dregs of society decide after a year they can't live there, and seek sect. 8 housing elsewhere!!!
It is worth about $25-30k IF we were lucky. We are sticking it out and hoping the market will turn around or the neighborhood gets cleaned up. in a GOOD market, even in a bad neighborhood it should fetch more than the $25k which is about all I think it will reasonably bring right now.
IF I got an offer of $60-$75K, I'd sell in a heart beat. Some guy{ slum lord} used to keep notifying me via mail {public records turned him to me} that he'd buy it to take it off your hands"...and has consistently offered only $12K {AND I pay closing costs!!!} at the highest he even came up to. Sorry, I won't give it away! If both sides are rented, I can make that in a year.
If I got your offer for it, I'd take it in a heart beat.
just take the deal! there is no guarantee someone will buy that house will the stuff you mentioned even if the place is pristine...also you may end up spending more than the average price of the nieigborhood...
take it and run!
I agree but I'll also add that you might first try organizing the owners on your block into a voluntary HOA of sorts with the idea that you try to inspire owners to begin fixing up their properties, cutting the lawns regularly, removing the dead cars, etc. Even if someone doesn't want to do it (or the owner can't be reached), maybe neighbors can work together and cut those lawns, too. The goal is to freak buyers out just a little less as they drive up to your property which will afford you a higher price and, in turn, help raise everyone elses property value. It's a lot of work to get off the ground but it can work, even if just for a little while.
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Take the money
