Negotiating With Owner Of Vacant Property
We currently have a REO property (one half of duplex) under contract, settlement middle of next month. FMV is $115k, we are paying $92k plus closing and approx. $4k in repairs. This is our 5th rental property. We do all repairs ourselves so our costs in that area usually stay pretty low (we are extremely fortunate to have in our family an HVAC guy, electrician, roofer and plumber). The unit on the other side is vacant and from all appearance has been so for awhile. Both these units have been vandalized (broken windows, paint dumped on carpet, walls spraypainted), but not excessively. We can get $1250 per month rent thru Section 8 (we love our section 8 tenants and they love us as landlords). We have a tenant already lined up for the one we have a contract on. We could also have have a tenant lined up for the other. My question is, how do I approach the owner as to buying the property? I have her mailing address. Even paying $92k as we did with the one we are buying, we would still be making money, but because it would be handled without a real estate agent there's no commission involved. The property has apparently previously been for sale, as there is an old real estate sign lying in the mud on the side of the house. This property needs roughly the same amount of rehab from what I've seen. I know for a fact the HVAC works fine because it was running full blast 2 weeks ago when we looked at it, as the one window upstairs is kicked out. Would you start off lowballing the property, or offer near what we are paying for the other side? What "buzz words" or verbage should I include in the letter to her to catch her interest? Any feedback would be greatly appreciated.
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