OfflineIm interested in beginning my first deal but is the this a deal to do or not? Ive been eying a for sale by owner house and have talked to the owner who is an investor also. He wants around $169,000 for the property he has been renting it out but there has not been any tenants in a couple months, it is a 4 bed 1.5 bath 1500 sq ft. he usually rents it out for 1000 a month and he has been trying to sell it for 5 months now. I would have made a very low offer but he has informed me of recent repairs made such as new tile new carpet etc. Now at first i thought of acquiring the property for myself then renting it out for maybe 1200 a month for a steady cash flow of about 400, but now im thinking maybe i can do an assignment deal and lock it up then hand it over to another investor who is more experienced but is this even a good deal in the first place?
Good Deal or Not?
Posted on: Wed, 03/09/2011 - 20:57
The repairs he has made should NOT stop you from making an offer.
What other repairs are needed?
Have run the comps for the area? to see if $169k is in the ballpark.
Have you researched the property records?
Why is he selling?
How long has he owned the property and how much does he owe on it?
Will he owner finance or L/O the property?
Do you have any buyers or tenant buyers for this property?
Whats his best price...$140- 150, have you asked him what his best price is? If he's an investor he already knows what you're up to(and thats good) and may have other properties too.
Mike
Mike
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You have to get the comps so you know what it is worth.
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What is the FMV, Comps etc. If it's 50% - 65% below the FMV then it's a good deal. Remember it's a Buyer's Market right now. It doesn't have anything to do with "how Much" repairs he already spend for his property. Blessings to all. LA
Everytime you repeat the words "I CAN DO IT" with conviction, you cancel or override your fear and increase your confidence. By repeating this affirmation over and over, you can eventually build your courage and confidence to the point where you are unafraid. -Brian Tracy-
Okay i see so i find out the comps which is the the value of the other houses in the the same neighborhood or also with a similar floor plan is that right? For one thing i know that the a similar house in the same area has sold for about 125 to 150,000 within the last couple months with one sale just done in February but i understand what you guys are getting at kinda i will ask if i can see the house for myself then try to make a sound offer
Another question.
If he hasn't had tenants for couple of months, sounds like he may be having trouble renting it for $1K/month. Do you think you will be able to rent it for $1200? You don't want a prop that will be sitting empty.
As Mike asked previously, why is he selling?
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That's what I was going to ask Karen how can you charge more if he can't get 1k
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
okay i see that that makes a lot of sense i will instead try to do an assignment deal if not i will rent it out for cash flow and instead of 1200 i will charge 900 or even 850 for positive cash flow