Posted by Redline on February 20, 2001 at 16:49:27:
Hmmm …
70% of $125k = $87,500
80% of $125k = $100,000
90% of $125k = $112,500.
So how do you figure offering $118k on a $125k house is “about 78%” of market value? Actually it’s about 94.5%.
To buy this to hold, and I presume rent will depend on how much rent this house will bring in - and how much cash flow it’ll throw off. Run the numbers - but this doesn’t look like a deal to me.
You’re basically paying RETAIL. Why?
RL
Flip this! - Posted by Lonnie Turner
Posted by Lonnie Turner on February 20, 2001 at 16:27:40:
I have a chance to buy a property that is worth about 125K & the owner will let it go for about 78% of the Market value. I know that a buy & sell investor want to get in about 70% of the Market value less repairs & my flip fee but what about a Buy & Hold investor. Do they buy 125K properties for 100K to buy & hold? What are you guys experiences?It does not neeed any repairs.The balance of her loan is 118K & that is what I will be offering. Should I pass or lock it up? Any suggestions,comments,crticism, will be appreciated.
LonnieWA
Maybe, if it’s Subject To - Posted by Monique
Posted by Monique on February 20, 2001 at 20:12:05:
Lonnie,
If it’s a low interest loan and the payments are much less than market rents, take another look at this deal.
Definitely don’t buy the thing all cash. If you can pick it Subject To at $118K, put no money into it, and market it on a L/O for $130K+, it might be worth taking a looking at.
Monique
Gosh I guess I better take a nap! - Posted by Lonnie Turner
Posted by Lonnie Turner on February 20, 2001 at 17:12:49:
I do not know what in the h** I was thinking of. I better lay off the caffeine & take a nap here. Thanks redline for bring this to my attention. I would never make a offer for all cash at 118K on a 125K home.
Lonnie