The Blog of Brian Copeland

Q&A: I am considering buying a townhome at 5934 O’brien Ave. Is this a good area to invest? Would I be able to?

As an additional piece of information, 5934 is currently withdrawn from the market previously at $189K. The history shows that, for example, unit 5920 was originally listed for $204,900 and is currenty under contract for $164,900. Prices now begin in the $150Ks now, however, none have closed.

Three things dictate success in selling a home like this…price, condition, location. These townhomes are in excellent condition, so it’s hard to improve that. You can’t move the location, it’s a permanent feature. The only thing the seller has to “play with” is the price, and they’ve obviously had to adjust to to get “in” the market rather than “on” the market.

All that said, if you’re looking to invest for a rental, the cap rate you’re aiming for will dictate if it’s a “good” investment. If you’re looking to live and resale, there’s two schools of thought. (1) Buyer beware. If the seller is having a difficult time moving them on the first sale, you may have issues on a resale one day; OR (2) Enjoy the discount and realize that you’ll have to compensate a future buyer the same way with price incentives.

If I was considering investing, I’d consider researching a bit deeper with your agent to see what homes/townhomes have sold well in this CURRENT market and have shown the best momentum overall.