# co-operative housing investment?



## tobuyornottobuy (Nov 19, 2011)

Hi, I have been reading some posts for a while, and was hoping I could now ask my own question.

I am looking at investment properties and an opportunity has arisen to purchase (cash purchase) a property that is on co-operatively owned land.
This would be a 100K purchace price.
The propery would rent for $800-950 pcm. 
The parcel of land is large, 13 acres, in between housing developments and is prime for development, 

The cooperative is looking to sell some for development (BUT, previous attempts have fallen through)- I will try to get more info on why.

So the property would yield a very good return, but not being mortgageable future sale price is unknown and is unlikely to rise much, unless its subdivided.

The other benefit is that although the land hasn't been sold off yet, this is very likely to happen at some point, though whether that is 2 years or 20years I dont know.

Has anyone been in this situation and can anyone offer advice/ potential pitfalls (of which I am sure there are many!)

My feeling, and figures would suggest, that as long as I am commited to the long term, this could be a very good investment.

(NB, the 100k is absoultely all my savings swallowed up!)

many thanks


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## marina628 (Dec 14, 2010)

My friends bought a unmortgageable place in Las vegas , I do not know why it is unmortgageable but I will say this not everyone are in position to pay cash as you and my friend did.I would never buy a property that the bank does not want as collateral.


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## mrcheap (Apr 4, 2009)

While I get where Marina is coming from, personally I'd be VERY interested in learning more about any "leper property", why it's unmortgageable, and how I could get a good deal.

That being said, you have to be very careful that you aren't buying someone else's problem, that you can cure whatever problem it has and that it actually *IS* a good deal.

Given that there are multiple owners that all want to sell, I'd be suspicious about this deal. If it was easy money, you'd think one of the current owners would be interested in buying out the other partners...

100K for $800-950 gross rent is NOT a killer deal.


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## tobuyornottobuy (Nov 19, 2011)

*unmortgageable*

I believe that it is not mortgageable because the land is shared, it ISN'T subdivided, so what you are purchasing is a house that is currently potitioned on a bit of your land and a bit of everyone elses.

I thought that return on that investment was darn good!, cant find anything better!, I have read many peoples formulas for what makes a good investment, and they would all imply that all my investments are bad LOL

When I have found a bit more nitty-gritty I will be asking more, and would love somemore feedback

Thanks for the input thus far.


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