$9k for $27k list price, waste of time offer? - Posted by HankTX

Posted by JohnBoy on November 12, 1998 at 11:08:47:

He might even open it as a paint store. He could leave all the chicken fryers in place and manufacture his own paint removers??? :wink:

$9k for $27k list price, waste of time offer? - Posted by HankTX

Posted by HankTX on November 11, 1998 at 09:41:19:

I made an offer on a house for $9,000. I drove by
it twice. It’s tenant occupied so I didn’t inspect
the property. The MLS listing says $27,000 is the
reduced price. Houston has no zoning, so there is
a church on the left of the house, and an abandoned
chicken restaurant in front of the house and 1
other run-down house on the right of the house.
The listing says it’s about 650-700 sq ft on
a 9900 sq foot lot, but the tax appraisal website
says it’s only a 5,000 sq foot lot. The houses
about 5 blocks away sell for over 65k. A house
1 block over sold with known defects for 29k.

I don’t know that market area very well though. I
I am thinking that $19k might be the best price
I can offer on the house. I would probably make
1k for flipping it, but that’s iffy. Somebody told
me I could always go up, but I can’t go back down
in price. I supposedly know all this stuff anyway
according to some people, and I am just asking the
same questions over and over each day. Don’t reply
if you think I already know it all this stuff.

-Hank Ha(HankTX)

Highest and best use - Posted by Bud Branstetter

Posted by Bud Branstetter on November 11, 1998 at 12:21:17:

While I would look at the income initially which would need to carry the place I would also look at the highest and best use. Would the property be more valuable as a parking lot for the church(take back a note) or the restaurant(new theme)? Would it pay to demolish this house and move another one in?

Determine your exit before you buy. Do you have to beat them up on an all cash offer? Will they take an offer based on some owner financing?

Re: $9k for $27k list price, waste of time offer? - Posted by phil fernandez

Posted by phil fernandez on November 11, 1998 at 10:50:55:

Hi LB,

Seems like we discussed this property in the chatroom a few nights ago. What is the tenant paying in rent?

I think you need a better fix on the value here. Tough to compare comps 5 blocks away, though if it is the same type of neighborhood you might be able to put some weight on them.

You also need to get into the house, tenant occupied or not so you know what you’re buying.

As far as the closed down chicken restaurant I would see if Piper would be interested in reopening it. PKC Piper Knows Chicken.

Re: Highest and best use - Posted by HankTX

Posted by HankTX on November 11, 1998 at 19:12:14:

Ok thanks everybody. They went down to
as low as 23k. Wouldn’t be a good use for a parking
lot it would cost another 10k to demolish it? They
said that’s as low as they can go because of
their mortgage.(maybe they are lieing) Thanks
Brad and Phil. :smiley: I did find another house though
going for about 50k. The roof is all torn up.
I will check that one out. It’s in the medical
center and that area goes for over 80k. :smiley:

Hank sings, “Move on, little doggy, move on…”