A good example of what 50K gets you in PHX.

[khuntrevor]

s-o-l-d......i'll try and find another.

[khuntrevor]

4608 n 11th st 40K.........

[S. Chris Webb]

4608 N 11th St... You did notice it's missing everything but the kitchen sink. Missing kitchen fixture, Missing kitchen cabinets... Oh wait, it's missing the kitchen sink, too. HUD home, good luck.

[ReadyFreddy]

You could re-do that kitchen for 2k. The lot alone is probably worth $40k. Scary that khuntrevor and I seem to see value where no one else does.

[S. Chris Webb]

ReadyFreddy - why don't you jump on these listings and buy them if that's your investment style? While some investors, like you, like older properties in more urban neighborhoods & think of rent cash flow, many other investors go for higher priced, newer homes in suburban areas, seeing them as a better opportunity for appreciation, less work, hopefully better tenants, and less upkeep. Others go for the fix & flip, but it can be difficult to get a good price differential on a low priced property when working in all of the costs. Different investors have different MO's. If you are successful and happy with buying homes like this, go for it - you might make a lot of money!

[ReadyFreddy]

Why? Do I need to buy it to discuss its feasibility as an investment?

I'm not saying there aren't legitimate, good investments at higher prices/quality levels. I'm just saying that "not having a sink" isn't a very good criterion to judge the worthiness of an R.E. investment. Plenty of newer homes have necessities removed. You factor in the cost to cure and judge the investment accordingly.

[S. Chris Webb]

Cost to cure a sink is one thing. But price of cabinets & plumbing are roughly the same in a $40K property and a $150K property of the same size. You may get more of a ROI putting the sink & cabinets in a higher priced property, that's all. When I said "working in all the costs" I meant closing costs and cost of carrying as well. I didn't say there's anything wrong with investing at lower price/quality - just that many investors have different criteria for choosing what is an appropriate investment for them. I'm sure there are also many other investors who like just the type of property you do, they assume the risks and sometimes higher profit.

[ReadyFreddy]

Originally Posted by S. Chris Webb

4608 N 11th St... You did notice it's missing everything but the kitchen sink. Missing kitchen fixture, Missing kitchen cabinets... Oh wait, it's missing the kitchen sink, too. HUD home, good luck.

This post just came across as "how could you buy a home missing the cabinets and sink?" We buy houses that need that stuff replaced all the time. They're not that expensive to replace. Ikea has highly rated kitchens for $1500. Home Depot's 'in stock' cabinetry is a couple hundred a piece (and no assembly!)

It's not like the house is an active meth lab on an Indian burial ground or something.

[S. Chris Webb]

"This post just came across as "how could you buy a home missing the cabinets and sink?"

That's because I missed the smiley face. Read it again with a smiley face:

"You did notice it's missing everything but the kitchen sink. Missing kitchen fixture, Missing kitchen cabinets... Oh wait, it's missing the kitchen sink, too".

"It's not like the house is an active meth lab on an Indian burial ground or something. "

That's the fear of many investors when looking at older homes, to be honest. Newer homes that are foreclosures with an unknown history are scary enough to some of them. Older homes are more of an ideal investment to those with a higher amount of fortitude.

[ReadyFreddy]

They should watch Weeds and Breaking Bad. The drug dealers/makers don't need old, little, rundown places. They can afford to buy the big, new model in the HOA community.