Possible First Deal but involves renovations

are part of the business. Assuming the property is local, go look at it and have the owner give you a tour. Check out the renovations yourself and talk to the owner directly to see if your can make the deal happen (if you feel it is right). Remember, this is a people business and you could get the deal just by showing up for the appointment. (there a lot of wanna be investors that just are too scared to show up) Jump out front and make a difference.

Ok thanks Bill and keb64. Yes the property is local (few blocks from where I grew up). As a matter of fact my parents still live in that neighborhood. I am setting the appointment tomorrow. I've done enough reading. It's time to act. Wish me luck and I will let you know how it turns out. Keiya

whether this is a deal for you or not - you'll get those jitters out. Come back and ask questions after you call or visit. Remember - this is all just people talking to people. You can do it.

You have to get your feet wet so why not now. Even if you consider it a dry run you will never know how to approach an owner unless you go out there face to face and try to make it happen.
Like Bill said, renvations are just part of the business that will never go away. As long as you own a prop there will always be some type of repairs going on. It is the nature of the beast. Good Luck...Jan

So it will cost you 90k if the estimates are correct and there are no other unseen repairs. What are the comps for on comparable properties in that area? And what is the rent you can get on each apt? That will tell you if its a great deal or not and if its worth looking into. Definately check it out to get your feet wet and get some experience. Also remember just because he is asking 65k for it doesnt mean you have to offer that amount. work on all the numbers i mentioned above and of course holding costs,repairs ins closing.
If your not sure about rents in the area for those apt 2br or what ever it is try RENTOMETER.COM. You type in the info and they give you the average rents in that area for the amount of BR's you have in each apt.
Good luck
Never EVER give up!!
Richie

Just make sure you come back and check the numbers, looks like its at 90k so far you need to know the ARV. Good Luck.

It's a 4br/2+1ba Multi-family, 2 units 1900 sqft
2nd flr unit already rented at $9k/yr.

Potential to generate 10K/yr for 2 units or 15K with the addition of an efficiency in basement
Comps in the area
$135,000 sold:07/14/2010, (Multi-unit), 1750sqft, .45mi.
$120,900 sold:09/03/2010, 3bd2.5ba, 1470sqft, .72mi.
$118,000 sold:09/10/2010, 4bd2ba, 1280sqft, .54mi.

If its going to cash flow decently after all your bills are paid at the end of the month then take the shot. Just make sure you have a plan A&B. I would pay for an inspection to be done within the inspection window to make sure there are no major problems.
good luck

Is like peanut butter without the jelly

it just doesn't work

I jumped one hurdle. I spoke with the owner representative and it was not as hard as I thought. Not sure if he was an agent or not(although I did not ask). The unit needing the renovations had the bedroom in the basement with the living and kitchen area being on the first floor. I did find out that $13K down was not negotiable. Now I am beginning to think that this property would be good as an assignment instead of a purchase because of the down payment. He did ask me what my credit score is? I have to find that out. Also, the owner wants the purchase price paid off in 2-4 yrs, which may not be possible with these major renovations. Maybe I am being a little too ambitous too soon. I just don't know.