OfflineI visited a property today that is a 1513 sq ft Colonial - 3BR, 1BTH. The owner was just layed off and wants to move out of state. The ARV is $168,000. He has first mortagage for $115,000 that is 7 years old. He has a second for $25,000 and an additional loan for $10,000. The house needs exterior painting and carpet and paint inside. Is there a deal here and does anyone have any advice on how I could structure this deal.
Thank you,
__________________
Congratulations on taking a look at prospective real estate deals. Unfortunately, this potential deal may not have enough margin to make it work out for you. If the current owner owes $150k and you will need to make improvements such as paint and carpet and you will also have to factor in your carrying costs such as insurance, utilities, property taxes, advertising, etc. it may not be profitable. The only way you could consider it is if you had an option to buy, or the ability to assign, the property for a set price and someone loved the home and paid a preimum for it. In today's market there are so many properties on the market it may be a better use of your time to see what other deals are available. Good luck on all your deals. Believe and Achieve!
Indiana-Joe
YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
https://www.youtube.com/channel/UCiko62V79zLKX_owbirAYNA
TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA
https://twitter.com/JoeJurekCPA