I would be renting these homes out, probably looking to get 450-500/month for them. They are smaller single family units all together on one street. The current owner told me that she was very meticulous on keeping the maintenance up on them and they appear to be in better than average condition. They are all brick exterior. The shingles on the roofs seem to be in good condition. I have a feeling that the market in this area is getting ready to explode and I would love to be able to get into some properties before it does. The only work these seem to need is that the yards could use some cleaning up (a few trees removed, etc.)
I am ready to make the jump into real estate investing and I have come upon a great opportunity. About 6 months ago, I called a lady in response to and ad in a local newspaper posted by someone who had four houses for sale in the small town that I live in. I visited the lady and she said she was asking $220,000 for the four homes. She was only getting $400/month rent for two of them and $350/month for the others. I knew that this income would not support a mortgage payment on $220,000, so I gave up on those properties. I received a call from this lady yesterday and she said she is ready to get rid of the properties because she wants to retire and travel. She has lowered the asking price to $179,000.
I would love to jump on these properties, but I don’t know the best way to proceed. All of my savings is in a 401k and I can’t get to it, so I have very little cash to put into the deal. Could someone please give me some advice on approaching potential investors with a deal for these properties? I am new to the town and don’t know a lot of people, but am ready to try whatever it takes to finally get out there and make it happen.
I also feel that the homes can bring in more rent than the current owner has been getting.
Check into a self directed 401k. If your money is in this type of account then I believe that you can move it into a self directed 401k and have access to that money.