I received a tape or a spreadsheet of seller financed notes today. It had 118 notes associated with 118 properties. To buy I must pick 10 I want to buy and probably should make an offer on 15 of them. So how to eliminate the ones I don’t want. Using Google Maps and Street View . . how can I do that? Well I have my own list of houses that I just don’t want to own at any price. For example I would want to avoid houses with only 1 bedroom, with only 500 square feet, that is 1/4 the size of houses all around it, and that sits on a double yellow line (busy street).
In the article below, Larry Harbolt outlines a list of
15 Types of House to Avoid
Over the past 30 plus years I have learned that there are some different types of houses I shouldn’t have bought. Each of these types of houses gave me a financial seminar I didn’t really want to take but because of my inexperience at the time I made mistakes I don’t want you to have to make. Here are some of the different types of houses you should definitely avoid until you have some experience under your belt.
1. Houses located on a Busy Street.
Houses located on a busy street will definitely be hard to rent or sell simply because very few people want to have to listen to the noise of traffic day and night and have to back out into traffic every time they want to go anywhere. Another problem with houses located on a busy street is the danger of their children going into the street and being hit by a fast moving car. Houses on busy streets are not anything I want to invest money into that will definitely be hard to sell and set on the market for weeks or even months before they sell eating up my profits in holding costs.
2. Houses with small front yards.
Houses with small front yards are like houses on busy streets they place the house too close to traffic and noise will be a problem for anyone who lives there. Another problem with houses with small front yards is there isn’t room enough to have landscaping to enhance the looks of the property. Most homebuyers want a front yard to distance themselves from the street and the traffic and have a place to landscape and a place for their children to play.
3. Houses that have steep driveways.
Houses with steep driveways will always be hard to sell or rent no matter where they are located. Because of the grade of the driveway it will make it difficult to enter or leave especially if you live in a part of the country where you have snow and ice throughout the winter months.
4. Houses near an Industrial Park, and Airport or near a busy highway.
Houses near industrial parks, airports or a busy super-highway will always be hard to sell or rent simply because of the noise and traffic of big trucks all hours of the day and night. Very few families want to live near any of these locations.
5. Houses that have a floor-plan that is Functionally Obsolete.
Houses that have a functionally obsolete floor-plan are another problem to sell or rent because nobody want to go through a bedroom to get to the household bathroom. The floor-plan should always have access to the household bathroom from the main part of the house.
6. Houses small in size with small square footage of living space.
Any house that has small square footage of living space is harder to sell or rent than houses with larger square footage. If you buy a house with small square footage, usually either a one bedroom or a two bedroom you have limited your buyers or renters to just a few select type of buyers and renters. When you have small square footage your only buyers are a single person, a married couple, a couple with one child. If they have two children of different sex they need a three bedroom and a small house usually only has one or two bedrooms.
7. Houses with Flat Roofs.
Houses with flat roofs have two problems. The first problem, they just don’t look good from the street. Most homeowners want their home to look as good, or better than all of their family’s homes all of their friends homes. The flat roof, just don’t have the esthetics that a pitched roof has for most buyers they just don’t look as good. The second reason flat roofs are less desirable is they many times have more problems leaking than pitched roofs do.
8. Houses built on or near low swampy ground.
Houses built on low swampy ground are far less desirable than houses built on higher ground because of the problems standing water and soggy yards cause. Anytime you have a soggy yard or any type of standing water in your yard you can have multiple problems. First of all you will constantly be fighting mosquitoes all summer long. You will also always be having a problem with mildew and mold in your house and mowing the lawn can be a challenge when water is standing in the yard. These houses are definitely not something you will want to buy and then try to sell or rent.
9. Houses located in or near a war-zone.
Houses located near war-zones will always be hard to sell or rent to families who have small children and can qualify for a mortgage. Most families want to be located in safe neighborhoods without worry of high crime in their area.
10. Houses with Poor curb appeal.
Houses with poor curb appeal are harder to sell because of the reasons I gave you in number 7. Most homeowners want their home to look as good or better than all of their family’s homes all of their friends homes.
11. Houses located in an area with a poor school rating.
Houses located in areas that have a poor school rating will always be more difficult to rent or sell especially to families with children and the parents want their children to get a good education to help their children get into college. Poor schools usually attract lower scholastic levels of the children who attend those schools.
12. Houses that are Over-Priced no matter where they are located.
Any house no matter where it is located that is over-priced is not the type of property real estate investors want. Investors need to fine houses that have some equity where the loan balance is less than what the property is worth in its fixed-up condition.
13. Houses with small kitchens and bathrooms.
It has been my experience over the past 30+ years that houses with small kitchens and bathrooms are hard to sell or rent in today’s market. The buyers of today would rather have larger space in the kitchen to prepare meals and spend time with their families and larger bathrooms that allow more space for the family to prepare for the day.
14. Any house you would be embarrassed to own or live in.
This one needs no explanation. If you would be embarrassed to own any house you can bet it will also be hard to rent or sell to anyone. Never buy a house you would be embarrassed to own or you will eventually take a financial seminar I don’t think you want to take.
15. Suicide houses.
I believe that any house where s life will definitely be hard to sell or rent. I personally believe that if you know someone ended their life in the house you should disclose that information to anyone who will be living in the house, it’s the only right thing to do. Most people will have a problem living in a house where a suicide took place so I would never buy one and have to take a chance I can’t sell or rent the property.
It is always a good idea to listen to someone who has walked through the fire so you don’t have to.
Real Estate Investor
Larry Harbolt is the nation’s leading Creative Seller Financing expert as well as a popular national real estate speaker and teacher whose time-tested strategies and nuts and bolts teaching style has helped thousands of aspiring real estate entrepreneurs realize their financial dreams with little or no money and without the need for credit. Larry has been successful creatively buying and selling real estate for over 30 years and has written numerous popular articles and real estate courses. Larry also has been running a meetup group for real estate investors in St Petersburg, Florida for over 13 years. Larry is the real deal!
Larry’s will be in Kansas City on September 9th at our Monthly Meeting discussing Creative Financing for Real Estate Investors and then he is coming back on Saturday September 13th, 2014 for an all day Deal Structuring Workshop. Please visit our calendar of events to learn more about these and other events at MAREI.