Seeking Advice on Buying a Cheap Place With Cash. (section 8, real estate)

[joey86]

I'd like to buy a condo or maybe a home for between 30-45 thousand cash. I know they can be found in decent enough areas. But where do I start? Is there something specific to look for with a realtor? I would think they might be more difficult to work with since the commission would be lower.

Any advice, wisdom or experience would be very much appreciated.

[jsvh]

My advice: proceed with caution, you get what you pay for.

What is your 'strategy'? Is this an investment you are planing to hold on to for years? A home you want to live in for years? Rental? "Fix & flip"?

With condos, they are sometimes that cheap because the HOA are in financial trouble and will leave you on the hook. Also, most condos are only allowed to rental out a small % of the units and have waiting lists years long before you will be able to have your first tenant.

Realtors have the market cornered and it can be hard to get good information. Take you time and research but if you find someone that you like be open to working with them, especially if you are not experienced. Also, you can negotiate rates with many Realtors.

[joey86]

I'd like to buy a place to live in for at least a few years, whether it's a condo on Boulevard or a bungalow in Sylvan Hills. An example of what I'd like is unit 11 at 673 Boulevard(can't link listings). It's in good condition and the hoa fees are low but the immediate area is seen as being sketchy. I can deal with sketchy if it's an area with potential.

I appreciate the advice. It has been hard to find info about cheap places but I know they're out there.

[ATLGA_KP]

Boulevard will forever be a sketchy area, my parents have lived in that area for over 20years and they haven't had any problems. Other than the street walkers, drug dealers, prostitutes at the Popeyes the area is okay just stay to yourself for the most part.

[jsvh]

Originally Posted by ATLGA_KP

Boulevard will forever be a sketchy area, my parents have lived in that area for over 20years and they haven't had any problems. Other than the street walkers, drug dealers, prostitutes at the Popeyes the area is okay just stay to yourself for the most part.

I disagree. The huge section 8 payoffs that Wingate has grandfathered in under has kept it the way it is. But I expect that there will be a day soon where the redevelopment profit will be enough to make even Wingate sell to transform the area with a massive redevelopment. That section of Boulevard is now an island surrounded by new development and high land values on every side. I will be surprised if it does not happen in the next big wave of redevelopment that seems to be building.

[red92s]

Originally Posted by joey86

I'd like to buy a place to live in for at least a few years, whether it's a condo on Boulevard or a bungalow in Sylvan Hills. An example of what I'd like is unit 11 at 673 Boulevard(can't link listings). It's in good condition and the hoa fees are low but the immediate area is seen as being sketchy. I can deal with sketchy if it's an area with potential.

I appreciate the advice. It has been hard to find info about cheap places but I know they're out there.

The amount of Section 8 housing in that immediate area will keep it depressed for awhile. A new Dunkin' isn't suddenly going to make it a real estate hotbed. I'd pretty much assume at least one car break in, and one mugging in your first 6 months living there.

[joey86]

Originally Posted by red92s

The amount of Section 8 housing in that immediate area will keep it depressed for awhile. A new Dunkin' isn't suddenly going to make it a real estate hotbed. I'd pretty much assume at least one car break in, and one mugging in your first 6 months living there.

That condo is between Ponce and North. It's the fastest changing area in the city. There are four projects within fifty yards of the intersection of Ponce and Boulevard if we include the two new restaurants, the bank and the renovation of the retail building next to the gas station.

It is almost at the intersection of two planned streetcar lines!

[jsvh]

Originally Posted by red92s

The amount of Section 8 housing in that immediate area will keep it depressed for awhile.

But almost all of that section 8 housing is owned by one group: Wingate. I think that is why the area has the potential for a very rapid and dramatic transformation. With one deal that entire stretch would transform over night.

[red92s]

Originally Posted by joey86

That condo is between Ponce and North. It's the fastest changing area in the city. There are four projects within fifty yards of the intersection of Ponce and Boulevard if we include the two new restaurants, the bank and the renovation of the retail building next to the gas station.

It is almost at the intersection of two planned streetcar lines!

I know exactly where it is. I drive by it every day. And no way in hell would I want to live there. "Think of the investment potential!" wouldn't mean much to me the first time someone put a gun in my face and demanded my phone and wallet. Including a fried chicken chain (that replaced another fried chicken chain), a bank (which was already a bank), a gas station (which was already a gas station) as "new development projects" is being a little . . . generous.

There is definitely upside potential. It sold in 2006 for $114k, at the height of the boom. Maybe it get's back to that after 5+ more years of development. But, it's still a 700 square foot 1/1 that was built in the 40's, and that won't change.

If you are comfortable with that living situation, power to you. People don't make money by being risk-averse. I just can't see myself living there comfortably until the area develops sufficiently, and the renters you'd attract with the current state of things are going to be constantly problematic.

[joey86]

I don't care about renters. I want a place to live. I am fine with living somewhere that many of you might not be. If I could get a place in a more desirable location I would but my money will only go so far and I am very intent on owning something outright. Thank you again for the advice.