Cruising Fannie Mae Homes

Today I looked at three homes for suitability for purchase/rehab/resell.  The first home was in a nice enough neighborhood.  Already the assessed value had decreased by $30,000 over the last couple of years.  The home was in terrible condition:
  •  Masonite siding that was damaged/rotting
  • Missing steps on an outside double door.
  • A sliding glass door that does not slide and does not lock.
  • Laminate flooring where the ends don't quite meet up
  • Carpet that is grotesque (smells/stains)
  • An unfinished room with missing drywall, ceiling and unfinished floor
  • painted trim with thick caps of dripping paint on the horizontal members
Another home was really quite nice, but I'm not sure that I can make the money work. 

The last home had a notice on the door of mold.  Inside, it looked like people had been massacred there.  Deep reddish-rust stains---not sure if it was blood or mold.   Either was unappealing.

As I look at these homes, to include the current rehab project, it is evident that quality does matter over the long haul.  Cheap windows, cheap cabinetry, cheap 'stuff' in general degrades over the years. Homes become disposable because they are loaded with stuff that looks nice at first, but over just a few years does not withstand normal wear and tear.  I do not believe that a home of 20 years of age should be decaying.

I'm trying to ensure that I'm looking at these properties with the right lens.  There is crap, modest quality, good quality and exceptional quality.  I want to take crap and have a new category--achievable quality to sell at a property.

We'll see.


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