whatSTRATEGY would you use on this deal ??

i forgot to add the fmv of this property per totalview.com is approx 67000. the repair list on this property is approx 10000 and this is figuring HIGH!
someone could move right in this property for 1500-2500 which is cleaning,cosmetic,furnace tune-up,includes garbage fee.the 10000 includes items such as siding,soffitt,facsia,deck,garage doors,lawn .

What would the property rent for? Are you paying interest as part of your $300 payment? How long before someone could move in? (Are there any trout or salmon in the river?)

That sounds like a great cash flow potential. You could find a buyer and offer to "sell" to them for $4,000 down on a sale price of $64,000. A note of $61,000 with a balloon due before your balloon payment to the seller. That would put the payment at $583 per month based on a fifteen year amortization at 8% interest. The buyers would be responsible for taxes and insurance in addition to their loan payment to you. You could use their down payment money to do the minor repairs, their monthly payments to pay the owner and the rest is cash flow to you.
If you can find a buyer who would take the property "as is" you should be able to pick up a few thousand by turning it quickly. Be sure they have the ability to qualify for the loan to purchase.

where is the Salmon River?

The property sounds nice and the home as well What is the fair market value 64K sounds abit low but it would cash flow nicely at this number

Hope it all works out keep us all posted as to how it works out

Thank you

Fred E

the surrounding rent for comparable houses are around 600 per mnth maybe i could get a little more ,with the numbers and possibly management and repairs im not sure renting will work but i am still running the #s.
the 300 per mnth is including interest.i just offered 300 per mnth with 1000 down and he verbal accepted.i am not sure if trout in river but salmon def not.
the property can be moved in only after cleaning ,toilet repair,furnace tune-up,fuel in tank.it has not been lived in for approx5 mnths.
thanks al for your questions and ideas.

This is what i would do if I found a property like that. I would find a motivated buyer who dont qualifies for a bank loan and lease the property as is with an option to buy in one or two years for $60,000. I would require a deposit, lets say $3000, that way you recover your down payment, plus some profit. Get payments for at least $600 a month for a positive cashflow, even including the interest. And since they accepted the property as is, they will be the ones making the improvements, since they have that feeling of onership. At the end of the lease they pay of the property for a little bit more of profit right there. I dont know If that can be done that way because I havent done it, but reading Deans books have given me some ideas.

Bill has some great ideas for you there to do a lease option on your deal. I think unless you have a renter in place and you can make some cash flow to boot, especially when a 1 family is rough to do, I would think the lease way to go. But it sounds like you have a great deal in the works, just need some fine tuning and you are making some $$$$. Good luck and keep me in the loop....Jan

First, I would get that deal on paper ASAP! And get some true comps from a realtor.
Then I would run an ad for lease/option. Asking $75K with $3K option deposit, or $70K with $5K option deposit, non-refundable but all goes toward purchase price. $600mo (or as high as your market will allow), with $100 going toward purchase price if paid on time monthly. I would do a 1-year or 2-year option period. If this one isn't exercised, you have enough time left in your 5-yr contract to adjust your price upward (to then-current market conditions), and to do another 1 or 2 year lease/option with someone else.
You can also tell them that when they are ready to finance and buy the property outright you will help with closing costs or some repair costs if you choose. This can be discussed if you need to add a little incentive to a potential tenant/buyer. Always be flexible (it's to your own benefit), don't make any idle promises, and put in writing anything that is agreed to. You will probably have enough people interested you can add to the urgency by showing it back-to-back, or overlapping on any given day. It will save you time and you'll have a number of "applicants" to choose from.

(Lease/option is just one strategy, of course. There are so many exit strategies. I think I would try that one first, though)

Good luck!
Let us know when you get it locked up! Sounds like one you don't want to lose, if you've done your due diligence. Congrats!

Rina

thanks for your advice on this deal you have some good points.i believe i will ask for down pmnt and mnthly pmnts at a cash flow .thanks for your advice!!

fred the salmon river is in bombay new york! and thank you for responding!!
jay

abner yes this sounds like the way to go.you and bill have some good ideas.thanks for your help on this deal!!

jan yes these strategies seem like the way to go on this deal.but as rina said i have to lock this up as soon as possible.thanks for responding and i will keep everyone posted on this deal.cant wait to complete this 5th deal to recieve the refund from the academy!!!!!!!!!!!!!!!!!!!!!!!!!!!
good luck with all your rei adventures
jay

thank you for responding! yes i need to lock this property up!! the lease option as u said and others is the best way to go i believe.great detail in responding i like the non refundable down pymnt mentioned and the early balloon.I did already advertise for 5000 down 600 per mnth even before i have it locked up.i have 2 potential buyers as soon as the contract is locked up and signed by both seller and i.i mentioned a 4 yr ballon to buyer and he said he can pay 1000 per mnth and pay off entire balloon in 4 yrs with a total price of 68000.this one potential buyer does not have the 5000 down .THE other potential buyer can get the 5000 down and can afford the 600 per mnth.BUT------- these are just potential until i have this property LOCKED up.right now i am in the process of locking this up!.thanks rina for your continued knowledge and insight.you have many great ideas and i value your wisdom .thanks again!!
thanks to all who responded and looking forward to any and all input on this deal!
jay