Talked to a landlord at a property auction and it changed my strategy

I was at a county auction in Manchester last month and this guy with 30 doors told me he never bids on anything with deferred maintenance. He said his first deal lost him $8k in the first year from a bad roof. Has anyone else switched to only buying turnkey after a nightmare repair?

3 comments

3 Comments

keith2641d ago

...and to be honest with you I'm not sure that one bad experience means you need to throw the whole playbook out the window. A guy with 30 doors can afford to be picky about turnkey stuff, but most of us aren't working with that kind of money up front. Deferred maintenance is a risk, sure, but it's not like every roof is going to blow up on you the second you sign the papers. I've seen plenty of folks do fine buying fixers as long as they get a good inspection and budget for it. Seems like this guy just learned a hard lesson early and now he's overcorrecting.

harper_owens1d ago

Read something similar over on BiggerPockets the other day, where a guy with 50 doors swore by value-add deals and said turnkey sucks for building equity long-term. Kinda makes you wonder if it's just whatever fits your market and your risk tolerance lol.

christopher4021d ago

Read something similar from @harper_owens on BP the other day actually.