IP with bad neighbors

[bmercury]

Hi, first time poster. Have one IP, a small 2br unit in Knox.

Found an excellent looking and located IP where the price is good but houses on both sides are poorly maintained with lots of rubbish on the front and back yards. I drove past a few times during the week and one of the houses has music blaring all day and evening with people yelling. I asked neighbors and they dont like the residents.

Should one avoid a property like this?

 

[wylie]

If the price is right, and there is potential for growth and you don't mind if your rent is lower than you could get if the neighbouring properties were better, than I suppose it could be worthwhile.

Eventually, (you would hope so, anyway) the houses on either side will be sold and possibly bought by someone who cares about how they look, or even owner occupiers. In the meantime, you will be faced with frequent tenant turnover, unless you put tenants in your house that match the ones on either side. As long as you don't expect too much, it could work.

But buy it cheaply, just in case it never improves .

 

[Pablo]

Find out if the neighbours are tenants, if they are it will be odds on that they won't stay to long.

 

[bmercury]

Thank you for the replies.

I paid another visit to nearby neighbors and learned lots. They tell me the troublesome ajoining house with loud music, junkyard and scum residents is owned by the occupiers from an inheritance. Those residents are disliked by all I spoke with, cause excessive noise during the day and night, ruining the look and feel of the court.

Similar houses on similar blocks of land within the area are advertised almost 10% more than this one. Its the second time this house is on the market in 3 years. The house is structurally good and presented well.

My dillema is $20-30 thousand dollars but knowing these bad neigbors wont move out, I wouldnt live there, would I have trouble keeping it occupied? How much should the saving be?