To deal or not to deal???
Details= house has been abandoned by the owner. His mom and uncle, a
realtor, are handling the house for him.
Owes 184,644 1st + 39,000 2nd and 3900.00 in back payments
Mortgage is assumable= FHA
Appraised at 235K 6 months ago, old appraisel
FMV comps= Low end 188k to high end 299k
This area is very hot in Denver right now.
To deal or not to deal, that is the question. Thanks for your help and
durhamdaniel,
Glad to meet you.
The only appraisal you can trust is the one you order. Sellers appraisals, are sellers appraisals, if you see what I mean.
You did not state what method of real estate investing you will use to purchase this house. This would help in determining if it is a good or bad deal.
Welcome on board this board. Let us know your method so we can advise you properly.
John $Cash$ Locke
durhamdaniel,
Short sale the second. If you can flip this to a retail buyer then you should be able to discount the 2nd. You could do the same thing in a sub2 but you would need to pump some cash into the deal. I think I would be looking for a flip and looking at the second probably around 10-20% of balance. Hey sign it up. With the idea of a short sale. Go find a buyer who you can give a GOOD retail deal too.
HTH
Jonathan Rexford
What are you going to do with the property? It looks like you can clear about $8,000 if you took over the loan. How much fix up will be needed? How old is the house?
There are a lot of questions to answered in order to tell if this is a good deal or not.
Thanks for all the replies to my Q's. First, I would like to flip the deal to another investor if there's room for us both to make cash.
2nd, the house needs little fixup. It's actually in pretty good shape. 2-3K because of an illegal spiral stairway he put in. 18" not 36" wide.
The house was built in 1927,2/2,
1306sq ft, awesome neighborhood.
Shoul I get the mother to quit claim me the property first and then try to short sale the 2nd? Thanks so much for all you answers and help. Dd