I need hard money...
this the first time for me. I am trying to put together a deal on the house listed below. does anyone have any suggestions?
Financing
Asking Price - $49,900 ( down from $74,000 last week)
Suggested Offer- $45,000
Taxes from 2002- $1919.00
Building
· 1.5 stories
· 7 rooms
· 4 bedrooms
· 1 bath
· built 1920
· condition is poor
· similar houses in same and similar neighborhoods are selling for $90,000 to $120,000
negatives
· Vinyl siding needs replacing
· Foundation needs repairs
· Needs drywall repaired
· Limited parking
Positives
· New vinyl windows
· New wiring
· Some new plumbing
· Good heating system
· High rent district (College town with an extremely high demand for rentals)
· Could rent for between $800 and $1200 per month depending on extent of rehab
· Presently occupied by owner
Note:
The tax data shows that the house is assessed against %40 percent of it potential fair market value because of it present condition. Based on this fact, the potential value of the house is $90,130.00. Add to this the value of the land as assessed at $23,400 and the total potential value is $113,260.00. Of course, this is after major repairs, but the potential there.
Seller information
Present occupant purchased House in 1984 for $16,500. She is a single mother with children. She is highly motivated and has lowered the asking price by $24,000 over the last week.
$$ Sounds promising on the rehab front as long as the seller isn't just lowering price because reality has set in after being "educated" by some informed rehabbers as to just how expensive the repairs necessary are. If you are new at this, be sure you get professional opinions on the foundation repairs and such to be sure the "deal" is a really not a lemon.
A properly worded contract will protect your interests and give you time to get things checked out if the seller takes your price.