Possible First Deal
The home I am looking at is almost 4000 sq. ft. with 4 bedrooms, 3 full baths, 2.5 acres, workshop, "Safe room/storm shelter", and well worth the asking price. The price seems to be about 30% below value after the basement is finished off...I expect the basement will cost $5,000 - $8,000 to finish.
Of course they want all cash and have about $40,000 equity. The seller is willing to talk terms, but doesn't seem too keen on taking back a note.
The seller did tell me that this was to be their last home even though he and his wife were only about 30! He has inherited a small farm closer to his parents and wants the cash to fix up the farm...so I can see him not wanting a mortgage in that situation.
This looks like a good deal, but I do not know what to offer since this would be my FIRST deal.
Any thoughts?
Millard Grubb
What do you want to get from the deal? Cash flow? Quick flip? Would you use it as a rental or finish the basement and sell for retail?
Would like to have basement finished and do a quick flip.
Monthly payment on the note would be about $1300.
Home is the middle home of three on a country road across from a farm. Mile from major road...Three miles from one town....four miles from another...10 miles from major city of 190,000.
Millard
One more note:
Seller wants $159,900...said he will finish basement for additional $10,000.
Home appraised last March at $167,000....Will probably appraise NOW for about $175,000.
After finishing off the basement, maybe an additional $10,000.
Cheers,
Millard
I'm hearing "probably..". The best thing to do is etablish the value (neighborhood comps). Also depending on the area, is price per square ft. steady, or has it appreciated or depreciated? Due dilligence is important to find out if you really have a deal.