One of the foreclosed homes (to the north, there is another foreclosed home to the south) bordering one of our rental properties sold. Our hope is that the new owners, an investment company, will repair and rehab the house, landscaping and the pool and sell it to some new folks. All of which would be good news as the property has gone into serious disrepair an Mr. Sam has had to board up the home more than once to keep trouble makers out of it.
The bad news, the house sold for $21,000 which is, not surprisingly, considerably less than what we paid for our rental property. Clearly the foreclosed home needs some significant work and repairs so I expect the investment company will need to put $30,000 into the property. However, even with the repair costs the total investment of $50,000-$60,000 is still considerably less than what we paid for our rental property. It is just depressing to think that at present our investment property is probably worth half of what we paid for it (if we are lucky).