💰 4 Distressed Deals You’ll Want to Steal
Multi-family auctions, condemned giants, and $26K/door steals.
We’ve launched a new Monday edition: Distressed Deals — real listings with real upside (and sometimes real problems).
Each week, we spotlight undervalued opportunities worth a closer look — from multi-family auctions to condemned fixer-uppers with major potential.
Free readers get one deal. Paid members unlock the full list.
Let’s get into this week’s lineup:
Distressed Deals of The Week
🏢 15-Unit Auction Play at $26K a Door? Yes, Really.
Court-ordered sale in a Central Valley college town. Under-market rents, 86% occupancy, and a $900K appraisal — but bidding starts at $400K.
🏗️ 16 Units on 3.3 Acres — Just $31K a Door with Section 8 Upside
Rural value-add play with only 3 units occupied. With updates and management, this one could print for years.
🔨 Condemned 12-Bedroom Giant with 4-Plex Potential
Nearly 8,000 sq ft in a historic Southern city, priced to move. Bring a hammer—and a vision.
🛏️ 16 Beds, 10 Baths, 1 Acre — Former ALF with Big Future Use Potential
Over 7,000 sq ft of space under $75/ft. Group home, co-living, or short-term rental? You decide.
132 W 18th St, Merced, CA 95340
📢 Court-ordered auction alert: a 15-unit multifamily in the heart of Merced listed at just $400K, or about $26K per door. With a current appraisal of $900,000, this deal could be a serious instant equity opportunity for any buyer ready to move fast and buy non-contingent. 86.7% occupancy, under-market rents, and a proforma rent roll of $191,688/year mean this deal’s return potential is very real — if you’re ready to dig in and do the due diligence up front.
💡 Pro Tip: Worldbid auctions require sealed bids with proof of funds — no room to hesitate, and no second chances. Due diligence must be done before bidding closes.
💰 Financial Snapshot
Auction Starting Price: $400,000
14 Units / 7,256 sq ft
Price per Sq Ft: $55
Lot Size: ~0.34 acres
Proforma Gross Income: $191,688/year
Current Appraisal: $900,000
Occupancy: 86.7%
Year Built: 1962
Parking: 15 spaces (covered)
Zoning: MF (Multifamily)
⚠️ Heads Up
Zero Contingencies: No inspections provided — you must underwrite blind unless you can get boots on the ground fast.
14-bed / 0-bath format likely a placeholder — real unit mix probably consists of 1BR or studio units (confirm with OM).
Sealed Bid Deadline: April 23, 2025 @ Noon PT — bids must include proof of funds or lender pre-approval.
🏆 Best Play
Ideal for:
Experienced multifamily operators who can rehab and raise rents.
1031 exchange buyers looking for immediate upside.
Investors who want to enter central CA markets at below replacement cost.
A true value-add play in a college town with a growing renter base. If you can land it near the $400K–$500K range, you’re sitting on potential 20–30% cap rate territory post-reno.