Good Deal Or Not
I need a little help on this deal,
I'm not sure if i should assign this or pick up the property myself using a hard money lender. The seller is giving up the property for what she owes which is $55,000. The mortgage payment is about $600 and its currently rented out at $675. Now the comps in the area are about 70,000. What should i do???
you have to consider repairs to bring it up to par. you didn't say. also holding cost { monthly payment, ins. taxes, lender expenses.} . if i can't make at least 10k after repairs and holding cost i don't take it on. actually i don't consider it unless i can make 20k but hey thats me. but the general rule seems to be 10k......km
It looks like no repairs are needed and I'm not quite sure what the taxes are but I will find out. Would that give you a better idea if its worth it or not?
why not get financing and buy it on your own. With new financing your mthly pymts would be a lot less than $600. and. A hard money loan could cut into your profits, find a good mortgage broker. another csenario is to put the property under contract with a small earnest deposit and assign it.
[addsig]
The big question is "What are you doing with teh property" Do you plan on holding long-term or flipping it? If you plan on holding long-term I would not buy a place for $55k that gets $675 rent, just my opinion though
"ray" what would be your desired rental income on a property bought for 55k.
[addsig]
Yes Ray,
What would you charge for rent, the seller said about $750!!!
if the seller is motivated to sell maybe they would be approachable for "sub2" fin. or a lease/option. if sub2 is in the game you can aquire the prop. without bank fin. and if they have paid a mortage for years it can be like aquiring a loan interest free {if they have paid for several years} if no repairs are needed it looks like a good deal, when weighting cost vs. profit. sub2 or l/o will keep you out of banks and hard money. this in turn greatly increases you profit margin...........km
For something that is 55k, I would want the rent to be at least $700 min. That's with no rehab needed.
what you charge and what you canget for rent is two different things. have you checked to see what the area rents on a similar prop. are......km
*Board Hustler*[ Edited by JohnLocke on Date 09/28/2004 ]