wholesale advice

[angeles]

Hi Everyone!

I would love some advice on whether or not I have a deal.  I have a very motivated seller that owns a house in a nice bread and butter neighborhood.  This house is by far the worst one in the neighborhood - the others are nice, nice street, etc.  This one in particular is a 1 bed / 1 bath but someone built on an addition and there is a second bedroom but is not acknowledged on the county assessors page so I am not sure if they did this addition without permits or what the story is, it has off street parking but no garage, fenced good sized backyard.  It is a little over 900 SF so not so small for a one bed.  It also has an unfinished basement. It needs repairs and updates.  Lowest comps in area are 18-25K and then there are higher ones for those on the market to sale for retail price.   
Here is my thinking so you know and then you can tell me if I am thinking wrong. Yes, it is a one bed technically which I know has more credentials but my thoughts are this is one of those properties that is a house in a nice neighborhood that isn't the best on the street and I have always heard it's better to buy this way than to buy a really nice house in a bad neighborhood.  These people are financially struggling and can't keep up with it anymore and just need out.  It has been vacant for 2 years.  It is free and clear but they have not been able to pay the back taxes for last 3 years which total $5,5XX.  My thoughts are, see about zoning and see if I can get it zoned for 2 bed so that is taken care of for the end buyer, get it under contract for the amount of the tax liens (providing there is no other type of lien against it).  Market as a 1/1 with an addition built onto it for another bed and show zoning for that is now approved and market to end buyer for $8,500 with a goal to negotiate to no less than $7,500.

Is this the right thinking?  I can handle the truth. Just do it in a nice way. haha

Thanks!
Angie

[jpetrucci]

Angie, I don't think zoning anything to say of how many bedroom can be in a house unless is on a septic.  Is that the case? but they do have restrictions of frontage and if it is or not a conforming lot.  Depending on that you will get an idea of how big of a house you could build.

first figure out the zoning because it not easy to changing the zoning and it will cost you time and money if it is even possible.  As you may know 1 bedroom are not marketable so unless it can be turn down and build a new 2 or 3 bedroom I don't think is worth pursuing in it.

[angeles]

thanks jpetrucci for the info!  the house isn't on a septic (that i know of).  Yea since it is technically a 1 bedroom, that was my concern with it not being marketing and was trying to think of a way to boost it but I agree - I don't think there is a deal here. moving on thanks so much for your response!

[bivsflips]

lol I see you already made the decision, NO DEAL..lol move on and find something else.