Securing 2 Properties At Once
I am close to buying a property that I plan on renting out. It is through a seller that has moved and just wants out. It needs a few cosmetic repairs that the owner is willing to pay for. He is also paying all closing costs and helping with the down payment so I can almost do a zero to very little down deal.
The question I have is on a second property. About 7 weeks ago I came across an estate sale with an asking price of $80k, which is the "as is" appraisal. It needs quite a bit of work, maybe in the $10-12k range. I'm sure it will appraise for $100+K after it is fixed up. The price has been lowered to $60k. I have never done a rehab project that in that range, money or time wise, and would like to get the first one rented before I take on another property.
Does anyone have suggestions on how I could get the both houses without being stuck in something I can't get out of?
Sell it before you buy it. Put it under contract, and then advertise it as a rehab. Or set it up a lease to own with the leasee doing all the work. Or you could partner with someone that can put up the cash and split the profits. You could also tell the seller what you are doing, and let them know if they are willing to wait you will offer them a little more, with no down payment. If it is an estate sale then you will be doing it through a lawyer, ask them if they have any investors that would be willing to partner with you. I am sure there are more suggestions, but this is what I can think of at 4am.
Good Luck,
Kyle
If you haven't done that kind of rehab, are you sure $10-12K is enough? What do you want to do with it after rehab? Rent it? Retail it? Make sure you know what your exit strategy is before you buy.
With an estate, you probably can't get an Option, but you can try. Or you can market it to rehabbers for a birddog fee. If you want to be involved in the rehab, to learn, then put it under contract with a weasel clause, and find a rehabber that will partner and teach you. Many of them would love to have someone pay the mortgage while they do the work. You then split the profits. With a $60K purchase, $12K in repairs, and a $110K ARV, you will find a rehabber.
Try GEREIA to find rehabbers. Good luck.
Peter