Posted by John on August 20, 2005 at 13:16:11:
This appears to be a skinny deal with buying, selling and holding costs and repairs. How sure are you on ARV?
I would probably try to buy sub-2 with seller deeding the property over. Get title insurance, to be sure no leins are on property. You could net 15-20 on this if you can sell quick.
FOUND MOTIVATED SELLER, NOW WHAT? - Posted by Taspak
Posted by Taspak on August 19, 2005 at 13:40:04:
HI ALL, PLEASE HELP WITH SUGGESTIONS. WHAT WOULD YOU DO IN THIS SITUATION:
1 owner with Parkinsons Disease
One month behind on payments of $1,100 per month
3 beds, 3.5 baths with partial but finished basement
2 car garage, ½ acre lot, deck and private back yard. Full porch runs across the house. All bedrooms are upstairs. Minor cosmetic work needed. Hardwood floors
Moving out in one week.
Owes $149,000, appraised for $165,000 in 2002
Should be worth about $195,000, based on a conservative increase of 5% per year, less $5k for minor repair work
Re: FOUND MOTIVATED SELLER, NOW WHAT? - Posted by John B. Corey Jr.
Posted by John B. Corey Jr. on August 22, 2005 at 18:25:16:
Some markets have not gone up 5% in total over the last 3 years. Never make a guess as to the value based on such a crude measure.
Run some comps. Use online sites if needed by plugging in the address for the property. Or call an agent. Once you have some comps then see how the deal stacks up.
John Corey
Chelsea Private Equity LLC