Dallas-Fort Worth Real Estate Investor Club

Need advice on run down property

  • 04 Jan 2013 4:35 PM
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    Message # 1171974
    Deleted user

    I am looking for advice on how to get an owner to sell their run down home. Any tips as far as post cards, how to catch their attention/get them interested in talking numbers, etc. would be a great help!

    Background:

    I lived next door to this house my last year in college (2010-2011). The lady who owns the home has been in a nursing home for at least 4 years. Her son's address in Dallas is the contact listed on the appraisal district's website.

    The county lists at ~$100k, but this is far overstated. The property has not been taken care of for years and needs a lot of work. Similar houses in the neighborhood range from $115-145k. It is a 3/2/1, but almost every home in the neighborhood has a converted garage, allowing me to rent to 4 college students. No central heat/air. Needs pretty substantial cosmetic work on the outside. Approx 1,635 sq ft. Pier & beam.

    I have no idea of the condition of the inside, but figure if I could take it for $30-45k and have a $35k budget (if I need to gut the place), I would still have room to refinance with a traditional lender and rent with positive cash flow as well as have profit built in.

    I am new to investing and this would be my first property, any tips/ideas/etc. are much appreciated.

    Thanks,

    Alan

    alan.c.novitsky@gmail.com

    Last modified: 04 Jan 2013 4:39 PM | Deleted user
  • 05 Jan 2013 7:38 PM
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    Reply # 1172562 on 1171974
    Robin Carriger (Administrator)
    If it's uninhabited, there's a chance that the owner may still be paying to insure the house, and the property taxes may be building up as well.  You can check on whether back taxes are owed at http://taxoffice.tarrantcounty.com.  Those two things (taxes and insurance) are great conversation starters as well as the fact that it's not in retail or even rentable condition.  You'll likely be doing the owner and/or her son a big favor by offering to buy the house.  My first words to them would be something like "I've driven by your house at 123 Elm St (whatever the address is) many times over the last few years and noticed that it's been vacant for quite a while.  Since I'm an investor who buys houses, even those that might need a lot of repair, I thought I'd just give you a call to see if you'd be interested in selling it."  There's lots more that could occur in the conversation, but that's how I'd start it.  Remember, you're making the call in order to help the potential seller.  Please reply back here to let us know how it goes.
  • 07 Jan 2013 9:27 AM
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    Reply # 1173414 on 1171974
    Deleted user

     Robin, thanks for the input!

    I had checked the county's website to check the taxes. That was my first step. All taxes are current. That is also where I found the contact information for the owner.

    I'll use that conversation starter and let you know how it goes.
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