OfflineI am looking at a property listed for $120000 which I can get for $100,000. Comps put the property at about $130000. After all expenses, the property will cash flow about $350 per month. It only needs a new carpet and some other cosmetic fixups. Should I go for this deal?
Any advice is much appreciated.
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How much research have you done on the property? $350 is good positive cash flow. Are there tenants in place? What kind of potential does the area have?
I am researching a property where the owner is asking $36,500 for a small two bedroom house. The value is between $60,000 and $70,000. It has a lot of newer items, it probably needs some freshening up though. I am going to look at it tomorrow. The owner needs to sell it immediately and only has a $6,000 mortgage on it. The best thing is that he already has tenants in it that were paying $750 a month but the owner lowered it to $650 when the economy tanked. I plan to put an offer in for $20,000 or so, depending on how it looks when I check it out.
I also found a house that is accepting offers on a short sale. The asking price is $124,900. It sold for $202,500 in July of 2005 and is currently assessed for $172,000. This house looks like new and is in a great are of Orlando and on a cul-de-sac.
I just started actively pursuing properties and have found some really good deals, now I just need to apply Dean's strategies.
As far as your deal goes, did you notice any words in the advertisement or in talking to the owner/agent that helps you find their "magic buttons?" (ie: must sell, moving, out of state owner, etc..) You may be able to get a better price and allow yourself more cash flow.
Tim
The deal might work for you if the cost of getting in is small enough. Cash flow is always cool. Have you researched the area? Is the rental occupancy rate good in the area? If you can get in you get some nice equity. All seems well if the comps are good.
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Northwest has a great point. You want to check with a local realtor or find out how good the rental occupancy rate is in that area. Also check out the surrounding area for grocery stores, malls, schools and the highway. If they have places that attract people then I would go for it. We've all heard it many times, LOCATION LOCATION LOCATION!!!! Good luck!
Kai
Money won't fall into your hands, you have to earn it!
Also you said you can get it for 100K? If that's the case, could you ask for 90? Keep that in mind too, the lower the better! Sounds like a pretty good deal though. Good luck
Kai
Money won't fall into your hands, you have to earn it!