A Little Help Here Please
I have an owner that is considering lease optioning a house in a not so good part of town. The house is 2 apartments. One- 1bd and One 2-bd. The owner is asking 85k. The house has a basement that has bricks that are coming out of the walls. He also said when it rains a lot the basement gets damp. My question is What would be a good way to work a no money down deal on this house being that it needs a bit of work? The house already has tenants in the one bedroom. The appraised value on the property is 70k. What can I do? Please help!
First thing to do is have a proffesional look at that basement to see what it will cost to fix it. Then start nit picking the price down some. I would start with looking at rehab loans to get it in shape and just ahve him take a second on whatever cant be financed. If you want a no money down deal have him do a seller wrap around and the refinance the property with a rehab loan.
Good Luck,
Kyle
if it appraised for 70k, and they are asking 85k, I would say that the property is overpriced. Also, if it needs help, then it is WAY overpriced.
Just a thought
Derek
Thank you both for replying. I too think the property is over priced. What are some techniques I can use to get him to lower his asking price. By nit picking about the basement. Also what is a wrap around mortgage.
Thanks for the help