OfflineHi All,
I ordered Deans books about 5 weeks ago. I logged into this site 3 days later, I think i've read almost every post since then. Thanks to all who contributed their knowledge to help me get to this point. I think I have a good deal in the making.
Here are the particulars: Gas heat, fireplace, updated kitchen, central A/C. (needs new carpet $ paint)
3br, 2ba
1 car garage
1250 sq.ft. ranch
no mortgage or liens(title search will verify)
Tenant occupied, rent $735 per mo
Asking price $30,500 (thinking of offering $25,000)
Estimates from 3 sources $26-60k
Comps $40-120k
Tax Assessment $102k
I left a voicemail for the seller asking if the property is still available.
I have a buyer/Investor from my Craigslist ad that is looking for "SFH that are cashflowing".
Based on my rookie knowledge thus far, this seems like a good starting point.
All insight, guidance and comments are welcome and will be greatly appreciated.
Thanks
Are you looking to assign, lease option to the tennant, or buy and hold. If a buy and hold, what are the taxes? (Verifiable tax bills) Need more info.
The comp spread is pretty wide. Where did you get the comps from.
Are you doing rehab? What is the ARV?...Jan
Hi Jan,
Thanks for responding. Since I am a beginner with no cash, I'm looking to assign it. The house was built in 1988, $735 estimated taxes (yearly). The higher value comps were built in the past seven years and sold at or above 100k. I got comps from Yahoo real estate, RealEstateABC.com, and using the TotalView RE site.
Dave
I would offer less than $25k. I always start low and give myself a limit to negotiate up to. Or find what they need and use that as leverage to negotiate a better deal. $5k is a very small margin. Best of luck to you!
Elena
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
I haven't heard back from the seller yet. Is there a list of questions posted anywhere that I could use to gauge the owners level of motivation, before I make my offer? I decided to offer $16,000 for the property. If accepted, offer it to my buyer for $25,000. His cashflow is almost 9k per year.
use low comps and high repair values. There are places that discuss the motivated seller questions so just search for those. You need to get acurate comps that do not have a 60k spread so that you can accurately find out your 70% ARV minus repairs or you will never be able to assign it or you may assign it for WAY to little and lose a lot of money. Get good at comps, I love zillow.com and totalviewrealestate.com, Good luck!
Matt Behrens
FR Properties LLC
www.frproperties.net
"Our Priority... You and Your Family!"
Journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/67147/...
F.E.A.R- False. Evidence. Apprearing. Real.
Talk IS Cheap!
Hi All,
The seller returned my call telling me he accepted an offer for $27,000. I'm on to the next possible deal then. Thank you all for your input, I'm definitely more confident looking for the next deal.
David M
USMC - First to Fight