Posted by Steve C., Houston on March 29, 2000 at 15:12:39:
You need a lot more info on this property: gross rents, maintenance, comps, competitive rents, etc. You also need to know what kind of appraisal you’re talking about. If it was a bank appraisal, what was the purpose of it? If it was a realtor’s CMA, forget it (even though I’m a realtor). Most realtors don’t do really tight CMA’s. They tell the owner what he wants to hear.
However, if a thorough due diligence gives you a green light, and the owner is motivated (why?), then see if you can use whatever cash or collateral you have against down and closing, plus the current months rents. You have to time this right.