Need Input Desparately !
Hello Everyone..... hoping you can help me out to see if this is a viable deal....(would be my first)
Had an anxious seller contact me yesterday regarding a property he wants to sell asap. Here is the information that he posted on our site. I know that it is assessed by the city for 32,600. The furnace, water heater, carpeting & linoleum is new inside. It needs a new roof and since the windows have plastic on them I would assume some new windows/siding. We estimate repairs at $8K
would like to do this as a sub2 if it is doable. It has a renter that has 1 1/2 years left on contract and the rent is 575.00 per month.
PropertyType : Single
SquareFootage : 4800 square foot
Bedrooms : 3
Bathrooms : 1
HouseVacant : No
Listed : No
AppraisedValue : 51000.00
LowestPriceAccepted : 44000.00 make offer
RepairsNeeded : roof will need to be reshingled near future need to sell A.S.A.P
Balance1 : $28000.00
Balance2 : $0.00
InterestRate1 : %9.75
InterestRate2 : %
MonthlyPayment1 : $362.00
MonthlyPayment2 : $0.00
PaymentsBehind1 : none
PaymentsBehind2 : $0.00
TaxesIncluded1 : No (875 a year)
Any advice ?
Thanks
Michele
Sounds like you might be able to make more money by doing a HELOC (home equity line of credit) where you can save a few bucks a month. If the client will quit claim you onto title there are a few lenders that will allow you to just refinance it and get the cash out so you have little to no out of pocket. [ Edited by jfmlv1950 on Date 11/23/2004 ]
can anyone give me a suggestion on how I should approach this with the seller ?
PLEASE HELP WITH ANY SUGGESTIONS AS I NEED TO CALL THIS SELLER BACK !
Michele:
Are you working from a sub2 course or just "winging it" here? Your question about how to handle this should be spelled out in any good course (John Locke's course comes to mind--being a user of that one myself).
If not, then your question is just too broad to answer here on the forum: not enough details about the seller's motivation, your experience with sub2 investing, etc.
My questions:
Why is the seller selling?
Does he need the money now?
Is he willing to keep the existing mortgage in his name until you sell/refinance?
What are you going to do about the current tenant--in IL you can't break his lease upon property transfer? Do the numbers work for the next 1.5 years tenant is in there?
What's your exit strategy: buy/hold/rent, buy/repair/sell, assign, wholesale?
Also, although I'm no contractor, if the place needs new windows and new roof, I don't think $8K repair estimate is going to cut it.
Just my .02,
andy