Hey, I've been following RETipster via the blog and podcast after finding Seth's interview on BiggerPockets a couple months ago. This is my first post here, so hello everyone!
I launched my first direct mail campaign a couple weeks ago and am starting to get leads and (much to my surprise) a couple acceptances to my automated email offers. I have only really studied up to the offer stage, and now I am starting to tell myself that I don't have enough information to say 100%
that I will be able to sell these properties after buying them...
I have a general understanding of how to go about marketing my properties for sale and potential selling strategies like offering to neighbors, but I don't really know how to tell for sure if something is sellable.
So I thought that I would see what the forum thought about being able to sell this one property that I am thinking about buying.
The property is in an empty subdivision created 15 years ago in a mountainous county. Looking at the declaration of covenants and restrictions, there were plans for a bunch of common areas and things, but nothing was ever built, and the subdivision was sold to another company a few years ago.
It is restricted to standard residential uses, and I am concerned that no one will want to live in a deserted subdivision. It is a huge subdivision with very few homes built on the parcels, while homes are built around it as you can see in the picture. It has road access via easement on the shared access road though (I confirmed with county).
I have a verbally accepted offer of $1564, no taxes or anything owed, and would likely close with an attorney for (what looks like - still calling around for estimates) $1000 - $1300. Three comps sold within the year in a 1-mile radius from AgentPro247 report average at $17,000; however, two are in decently populated areas with paved road access. One was a large land owner buying out his neighbor's parcel. There are a number of comparable parcels sold within the last two years within the same subdivision by the new subdivision owner at around $10 - 12,000.
My primary plan would be to market it for sale at $10,000. Secondary exit plan would be to offer to the family that owns a contiguous stretch of parcels touching the property in question. Final exit strategy would be to try and sell back to the new subdivision owner at around $5000 and
convince them that they can resell at assessed land value of $12,000.
This being my first deal though, I really don't know how to tell what should sell. I would love to hear from someone with some experience on whether or not my thinking and pricing makes sense. Has anyone had any success with these types of seemingly deserted, residential use only properties?