1st Deal, 2nd Post... Please respond - Posted by Seth

Real Estate Investing
1

Posted by Mario on August 25, 2003 at 13:21:36:

If you don’t feel comfortable, don’t do it. That’s my motto.

There are plenty of deals out there to make money.

2

1st Deal, 2nd Post… Please respond - Posted by Seth

Posted by Seth on August 25, 2003 at 12:44:16:

Hi all,

I usually have good luck with people responding, but I posted a couple of days ago and no one responded :frowning: - I’m tryin’ again.

I know of a 6 family house in a very very ghetto area, but I think it has potential. Here are the Numbers:

Price: $340,000 (Owner will definately negotiate. House prob. need about 10K of work.)
Downpayment: About $10,000 @ 3%
Current Rental Income: $4725 / month (Including 1 apt on Section 8)
Taxes: About $5,000

I’m not sure if I should do the deal. Being that the area is not a good one, but I think I can make some $$ off of it. Suggestions?? Comments??. Thank you.

-Seth

3

Thank you all for your responses - Posted by Seth

Posted by Seth on August 26, 2003 at 06:48:14:

Thanks everyone,
I will pass this one on, and keep looking. :slight_smile:

4

Don’t touch it. - Posted by Scrooge McDuck

Posted by Scrooge McDuck on August 25, 2003 at 22:45:35:

If it were a good building in a good area it would be a decent buy at that price but nothing to get excited about. But from what you say it is WAY overpriced and a big headache to whoever owns it. Don’t be a sucker. Keep looking.

5

Re: 1st Deal, 2nd Post… Please respond - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on August 25, 2003 at 21:33:57:

Seth------------------

This is a tough one to advise on. If you had experience with properties in such an area, you’d probably be able to answer the question yourself, rather than ask others. A property like this should probably not be a first deal, unless you grew up in similar areas.

I’d suggest you past on it and concentrate on single family properties at first. Less investment, thus less to lose if it goes bad. Also probably a lot easier to sell to an owner occupant if you need to get out.

One possibility would be to do a lease with option to purchase. You master lease the whole building and then sublease out to renters. Have the right to purchase at any time in the first three, four, or five years. This way you get to test the property without committing to it. If it works out well, you buy. If not, you don’t.

Good Investing*************Ron Starr***********