Buying sight unseen

Jesus.. you're asking for trouble with that approach.

 

It works fine until it doesn't... then unravels the returns from all the previous deals.

 

As I also mentioned - I don't recommend people do this until they know the area, and especially the agents inside out.

Almost 30 great deals bought this way and no 'unravelling' to be seen. One of the recent ones had a few holes and bits and bobs needed patching that were 'surprises' but also expected before purchase. All up cost less than $4000 but I guess the $100,000+ equity pulled after 3 months on purchase took care of that concern quite easily.

 

It has nothing to do with area or the agents. It's about due diligence. Statistically every purchase brings you closer to encountering a dud. The more you buy, the higher the probability.

The term 'house of cards' comes to mind.

 

I've bought four sight unseen. Two went well, two not so well.

Of the two ok ones, @MTR kindly inspected that one for me, and another a trusted agent did.

The two that didn't go that well, I had a local property manager look at a number of properties before settling on those. She seemed to know her stuff, had all the right answers - but 6 months down the track I found out she was sacked.

The experience has left me a tad sour on trusting strangers to look at properties for me. Having said that, I'd be open to doing it again depending on how much time I want to spend vetting the person doing the inspection. You have to be able to trust that person and only you can decide whether you are willing to base your decision on the word of a stranger, even if they are supposed to be acting for your benefit.

 

I have brought 36 properties sight unseen ... based everything based on google street views , the lease and the title

 

Interesting, the property I looked at was in a very nice Street, your house was probably the least desirable, but that is OK, they are not making land anymore..I think the attraction with this property was the fact that you could add value, it was a massive block. However, this area may take some time to achieve growth, as long as its positive cash flow deal, I don't think its a biggy
Did you complete the build at rear? Ventura Homes??? been a while now

 

Yes, thanks @MTR the build finished over a year ago and it's going well, both houses rented continuously. You're right in that the area will take a while to grow, rents have dropped quite a bit as well making it more neutral than positive but at least it's not costing to hold so I can sit on it for a while. And one day - knock the shack down and build there too.
Thank again for your help that time

 

Sounds good.
Once the market moves, access equity from rear and build new property at front

 

You skew the statistics