Posted by DJ(MD/DC/VA) on March 15, 2000 at 10:05:55:
Thank You for your response. This is what I had thought. I am a newbie and appreciate the help.
: )
DJ
Cottages, difficult sellers… - Posted by DJ (DC/MD/VA)
Posted by DJ (DC/MD/VA) on March 14, 2000 at 10:36:18:
Hi. I have been researching a few different investment opportunities in my area. I have recently found 3 cottages. 1 2BR/1Ba, and the other 2 are 1 BR/1BA. (Waterview, solomons island/mrytle cove) Currently 2 are rented for $550. ea. The other is owner occupied. They have been on the market since the end of last summer. I contacted the Realtor, she doesn’t have much information except that the owners have a first and a second, plus they want $169,900.
Now here’s the question, the sellers want to make sure that the prospective purchasers are “qualified”. The realtor refuses to allow a showing or offer unless this is done. I would like more information on these homes, but I feel as if I am getting no where. I have asked about the sellers doing owener financing, but the realtor is clueless… I plan on going and checking out the property, maybe chatting with the owners a little, and dropping my card. If they get desperate enough, they will drop me a line.
I would like some feedback… is this the right thing to do? I feel that if I push the issue with the realtor/seller, then it may be a waste of my time. The sellers seem to be difficult.
thanks in advance.
DJ
Re: Cottages, difficult sellers… - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on March 14, 2000 at 20:04:37:
DJ,
It sounds to me like you have found what I like to call a “NO DEAL” deal. This the kind of property that the rich and famous folks like to use about 3-4 weeks every year. The possibility of full occupancy is somewhat slim (year round). The numbers don’t work at least for me. You might need some negative cash flow but it’s not for me. If you could borrow (from the seller) 100% @ 10% your interest alone would be about $475 per month per unit. Now add taxes insurance (bad storm area) repairs…Negative. Now consider that most of the population does not want a 2 br house, and most of the population is not rich n’ famous. On top of that it appears that the seller probably is , and has no need to sell (not motivated at all). Combine this with a realtor who does not have a clue. I call it a “NO DEAL” deal. My suggestion is to move on and be greatful that you kept your money in your pocket…ED