Am I overlooking any problems here? - Posted by Leonard
Posted by Leonard on September 24, 2003 at 12:10:50:
Here’s the deal. I’m in Florida and some people are willing to walk away from a property because they don’t have the money for some electrical repairs. They were told that it would cost $1200-$1500 to replace what’s needed to get the electricity back on.
The balance on the place is $39,000. Cleaned up and repaired I estimate that the market value is $60,000-$62,000, so the potential profit is around $20,000.
They have a 1st and 2nd mortgage. They are willing to cover the 2nd; its paid off 3/04. The 1st is $472 and rent on a lease/option should be at least $550-$600. I plan to market it as a lease option/handyman special since I don’ want to put any money into it in case something goes sour.
I may need to give some concession somewhere since the end user will need to repair and clean the place . My request of you readers is this; am I overlooking any major problems here? This will be my first deal and I don’t have the vision of an experienced investor.
Any and all comments are appreciated. Please do respond. Thanks