As I've posted before, I have been searching for a cheap investment property. There are numerous properties available due to the large number of foreclosures in the Atlanta area. I put in an offer last week on a nice bank owned single family home but was I was outbid by another buyer.
I had a few backup properties and saw those yesterday with my agent. After looking at 3 properties, I decided to put in an offer on this one.
This property is a 3 bedroom, 2.5 bath fee-simple townhouse built in 1990. The property was originally listed for $61,600 but was reduced to $31,600 on 8/4/07. The last sale price was $80,000 on March 3, 2005. The county tax assessor has the value of the property at $76,600. The value range on Eppraisal is $78,563 - $106,413. The value range on Housefront is $87,000 - $97,000. There are about 5 properties for sale in the community with asking prices from $48,000 - $89,000. Rental rates in the area range from $650 for a 2bedroom and $850 for a 4 bedroom.
The property appears to be structurally sound and only needs cosmetic repairs. A condition of my offer is that the property inspection is satisfactory. The previous owners were apparently upset that they were losing their home and caused a little damage to the property. They smeared the walls with a unknown substance, broke all the light fixtures and caused minor damage to a few of the walls. The front and rear doors and the carpet will need to be replaced. There are also a couple of broken windows. I estimate I will need to put about $10,000 in the property to make it livable.
The offer was faxed over yesterday afternoon so I should hopefully hear something on Monday.