Best approach for this deal, if a deal at all? - Posted by Ken - DC
Posted by Ken - DC on July 24, 2003 at 21:09:04:
I talked to a motivated seller today who has a single family detached home in a rather bad area – I saw it today. He says he renovated about 6 months ago and he has Section 8 tenants in it who are giving him pure hell - tearing up the place.
He has 1st and 2nd mortgage on it totalling to about $75K. Apparently monthly payments are about $1100. My initial peek at comps gives a maximum of $80K if in perfect condition. Actually after talking with him a second time, he confessed that he had listed with a realtor a few months ago and couldn’t sell. Blamed it on the area/neighborhood (War Zone).
It gets worse, apparently, there are some repairs needed big time: it has a leak in the roof, tenants pulled out the sprouts from the gutters and the rain water flows down the walls of the house and into the house, as a result, serious floor and other damages. He says he’s in the process of evicting tenants.
When I first talked with him, he didn’t mention the extent of the repairs and so I had sold him on a lease option. I quickly went to see the property, just from outside and got a better understanding of the neighborhood. Liquor store on every corner, plenty boarded up houses, etc… You get the picture.
I am now reevaluating what strategy to approach this guy with. He is pretty much open to anything… that would take care of his payments, and/or save his credit. Ideas needed ASAP.