Hi All
I like to look at what some companies are selling property for in Atlanta. Fairburn is an area that I would target, this property seems to tick most of the boxes for me.
Look at the purchase price
http://www.trulia.com/homes/Georgia/Fairburn/sold/21832138-464-Berkshire-Pl-Fairburn-GA-30213
Look at the sale price, nice earner for this group …….
WI
I hope they renovated them before onselling
Coincidently I just found out that someone I know was looking at this property and it required a $20,000 rehab, Not a cheap rehab.
This would have been an awsome deal if purchased direct from the bank. Great cashflow and the house/area ticks all the boxes.
This company is making approx $24,000 profit, that would kill the rental yield for me.
If you can buy foreclosures directly from the bank makes sense to me, cutting the middle man out and commissions.
WI
I was the one angling to purchase this property with the foreknowledge that there are fundamental problems with this house.
The whole of the baywindow area inside the house was water damaged and no doubt heavily moulded behind the gyprock. The bank (or someone) had already tried to repair the damage but even the repair was showing water damage.
Basically when it rains it has a waterfall down between the garage and the bay window. All the roof elements converge on this spot with this spot being about 300mm. With the orientation of the house it appears that the bulk of the weather is directed to this area.
With so much water coming together the is really no way to keep it from flooding into the building cavities.
So whoever bought this property is going to be facing substantially increased maintenance costs to continually rectify the basic and inherent building fault.
I was prepared to pay up to a price and spend money to rectify the inherent fault. I doubt that those who bought and then flipped it will have done anything more than slapped a bit of gyprock and paint around so this fault will just reappear from the next major downpour.
Beyond the visual damage is the ongoing mould issue which will potentially effect the rent-ability of the property and even invite a liability issue should a tenant suffer some medical issues as a result of the mould.
Not everything that shines is gold.
There was another property that was up there with this one in the water scenario – same issue – inadequate gutters for the mass water influx known as the great South USA – in that instance the downspout was missing, the water had therefore caused the mould behind the brick fascia etc etc. Fascinating to see – absolutely amazing the damage… and spore growth!
There was another great property that I had meant to put an offer in on that just demonstrated the issue with water and brick fascia – basically was just a 4 sided brick petri dish of mould on the inside as all the brick managed to do was encase the mould…. of course that just screams “buy me” to me but granted I accept not everyone likes wearing facemasks for 4 months of a rehab in Hotlanta.
usainvestor – I think about the ONLY thing we can guarantee is that there will be a slew of lovely lawsuits at the end of this little crash..
24k mark up – bejeezus.
Mind you, it won’t be long before the concept of flipping makes sense to many….. In Vegas I would say 1 in maybe 15 now only are foreclosures…the rest – diabolical flips – and probably a lot of them are people who, like the above instance, I will have at a guess know FULL well that their property wouldn’t pass a real building inspection from a lender and so they had better get out now while a foreign investor will buy without a clue beyond a cursory home inspection..(probably “provided” by said flipper)…actually, to those reading – a REALLY REALLY good caveat emptor story
FANTASTIC highlight… thanks wi & usainvestor..
Sigh – oh the games will just begin anew….
worldinvestor wrote:Hi All
I like to look at what some companies are selling property for in Atlanta. Fairburn is an area that I would target, this property seems to tick most of the boxes for me.
Look at the purchase price
http://www.trulia.com/homes/Georgia/Fairburn/sold/21832138-464-Berkshire-Pl-Fairburn-GA-30213
Look at the sale price, nice earner for this group …….
WI
Not real familar with that particular area but seems to be a SMOKIN deal
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