OfflineGood evening everyone. Hope everyone is having a wonderful day.
I have found a property that has been foreclosed but is still on sale for $120,000 or it can also be a for sale by owner. The real estate agent who has this property is asking either 3-5% down if going with a bank or $20K if going with private lender.
This house is a 3 BR, 4BA
2,070 sq ft
21,780 lot (1/2 acre)
built 1988
(Foreclosed)
selling at $0.51/sq ft
2011 Tax assessment $100,883
(Haven't been able to get comps yet)
Curret Taxes due: $2,932.51
Market Value: $102,625
Land value: $18,662
Improvement Value: 83,963
Repairs of approximately $8K
I want to get this house for myself and use it as a rental property. What do you guys think? Any help would be greatly appreciated.
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1. If the property is for sale at $120,000 and it is 2070 Sq. Ft it is selling for $57.97 a Sq. Ft.
2. What are the current market rents?
3. How do you plan on financing this purchase?
4. What is the property actually worth?
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Hi, B~
Are the taxes in addition to the $120K?
If so, I calculate $59.39/sf incl. taxes @ $122,932.51.
I'm a bit puzzled with your numbers...The market value is $102,685?
Where are your Sold Comps Data?
What are the market rents for 3/4s? Any garage?
What's the loan balance?
How did you determine the repairs? Even at $5/sf I get $10,350.
How will you purchase this property?
And it's kinda odd to have more bathrooms than bedrooms. (?)
The concept is to get DEEP discounts on properties we buy.
Maybe if the ARV was $120K and you were getting it for $50-60/sf it might be a deal.
Otherwise, I'm not really seeing a "deal" here, based on the given numbers.
Happy Prospering! ~Kat, Liberty Residential Investment Acquisitions
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