I was talking to one of my brokers yesterday and he told me , "You know when the market is in a real estate bubble when you have investors fishing in trouble neighborhoods to fix them up and sell at high prices!"
This was funny because I was going to one of these properties when I was on the phone with him!!! lol.. Bottomline, if the numbers work, your risk is low.
I brought one of my buddies over to this one because it has a large lot and you may be able to build another house! After talking numbers, it would be tight because to build a 1080 sqft house is about 80k, and we probably couldn't sell it for over 100k because of the area. He does this in the nice areas and make tons of cash.
The rehab on the existing house is simply amazing. I estimate you have to replace 80% of the drywall, and you can't keep anything in the house. Everything has to go!
The guy offering this is trying to wholesale, and got it from door knocking from a preforeclosure list. Umm... That's what I do!
Anyway, he's asking for 80k, if I can buy it for 65k, the numbers work.
Do I have a chance? We'll see.