The Dangers of Investing in Real Estate - Vancouver, Wa.
Real estate investing can be a dangerous game. Real estate markets rise and real estate markets fall. Any of the professional real estate investors will tell you that it is impossible to "Time" any market. Interest rates climb quickly and drop slowly. Deals close and deals fall apart. Real estate investing is like a real life puzzle in which you are constantly over coming roadblocks and dodging pitfalls.
Janice and I have been active investors for several years now. It started out as a weekend method of reinforcing our retirement and has grown to more substantial source of income. We would read through the real estate section in the newspaper and then drive the neighborhoods looking for opportunities. Naturally, we focus on real estate in the Vancouver, Washington market but more specifically, we focus on an area called Felida. Our target area of Felida is generally on the safe but sometimes we find ourselves on the outskirts of town.
Over the years we have stumbled across other dangers in the Vancouver, Wa. area as well; more real and physical dangers. As investors we are looking for run down and often times abandoned homes. The dangers in these types of homes can vary from loose floor boards and tripping hazards to illegal squatters (often drug addicts) taking up residence in basements. Yesterday, while working with a client who is looking to invest in Vancouver, Washington, I ran across another hazard of which I wasn't aware.
We only had 4 Vancouver homes on the list. They ranged from foreclosures to REO's to homes listed by relocation companies. The second home was listed by a relo company and seemed to be a killer deal. 2,255 sq. feet listed at only $200,000. With the right financing my client could probably buy this place and rent it at a profit. We were both excited to see it.
We entered the home and did the typical tour. Checking out the overall condition and making notes as to what it would cost to get it into rent-ready condition. Everything seemed to be in good condition. We checked our notes and went off to visit the others. Fairly uneventful: until I got back to the office and Janice asked me about the "Fleas." I guess she had talked to the listing agent and was told that there was a serious infestation of fleas at that second home home. A pest control company was supposed to take care of the problem the night before I showed the home to my investor client. No problems! Right?
No. Not right! The next morning, Janice and I were rushing out for a day of touring homes with clients. Janice wasin the car for 3 seconds when she noticed a flea on her arm. That was followed by 5 more on her leg and then a full on flea attack being waged on her other arm! The entire car was infested! How were we going to tour with clients in a car that has the "Fleas of a thousand camels" living in its upholstery and carpet? Luckily our clients wanted to take their kids with them and decided to drive their own car for this trip. We finished the tours and made a bee-line to the nearest Pet-Smart for flea spay!
All in a day's work as a real estate agent in Vancouver, Washington!
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