Posted by Barbara (ME) on May 31, 1999 at 08:07:49:
Some of you newbies may be interested in this deal I had last Fall.Offering a carrot can often produce wanted results!
Large house FMV $70,000…3 bedrooms, hardwood floors,porch,family room with fireplace, large level lot… empty because out of town landlord did not want to rent it out.He had bought it for his mother who was now in an assisted living apartment.House was in a lovely location and needed a bare minimum of repair (just minor painting and a bathroom drain replacement).
Tracked down the owner and he said he wanted to sell it for $38,500 (He didn’t realize how prices of real estate had risen). Agent had had it, but contract had run out and since we live a ways out, the agent didn’t show it very often.
We were leaving for Florida for the winter, and we did not want to get into any real estate transaction before we left.
I knew a couple under Section 8 who was looking for a place to rent. The owner of the house said if he were renting, he would want $400 a month. So I convinced him to immediately become a Section 8 landlord at $600 a month to hold the house until we came back from Florida and we would buy it for $35k then.He agreed and we signed a simple agreement to this effect.
When we came back from Florida we bought the house and immediately got $35k equity. (It was professionally appraised at $70k).He also paid the closing costs.
It is the same old adage…find out what the seller wants. In this case he didn’t want the house sitting without income and wanted to be able to forget it. The section 8 landlord position was also transfered to us after the closing.Now we get over $200 a month cash flow.
After it was completed the owner told the tenants I was “a woman after his own heart” so I guess he was happy with the deal! The tenants were happy (there is a one year wait for section 8 property here), and obviously we were too!
Sometimes a little carrot works!
Barbara (ME)