Posted by Michael Morrongiello on March 07, 2000 at 17:10:37:
If you can obtain Owner Financing that is a great way to go. It sounds like there is some motivation to sell these units. Perhaps the owner is burned out on management, etc.
Michael Morrongiello
FSBO Triplex. Please HELP!!! - Posted by Brenda PA
Posted by Brenda PA on March 07, 2000 at 08:22:22:
Hi,
Among the For Sale listings in the Sunday paper was an ad for a FSBO triplex for sale. I contacted the owner and his asking price for the 3 story building is $65,000, where the rent for 2 studio apartments is $325.00 each and a one bedroom apartment is $425.00. The property has one vacancy at the present time (studio). The property is free and clear and the owner claims that the property is in good condition, however I feel that it is not situated in the best of neighborhoods. He doesn’t want to lease purchase the property because he’s done it before and it didn’t work out, however, he is open to any offers, including holding a mortgage on the property at a slightly higher price. The area is great for renters. I am not sure if a studio apartment is attractive to potential renters. I fear that the turn over rate is high for a studio apartment. Anyway, the taxes are approximately $800.00 a year, insurance is $723.00, water is $35.00 a month. The tenants pay their own utilities. The owner did all necessary repairs and management of the property. How should I structure the offer to make it a win/win deal.
I appreciate any comments or suggestions.
Thanks,
Brenda
Re: FSBO Triplex. Please HELP!!! - Posted by JPiper
Posted by JPiper on March 07, 2000 at 19:55:52:
I have a studio apartment in a building I own. It was occupied for the last couple of years by one tenant…a student who finished school. Good tenant.
When a advertised the unit my phone rang off the hook. I was amazed. I guess people like the idea of low rent. I wouldn’t run from this deal for that reason alone.
Without knowing more about the area, you, your credit, cash, etc. it’s hard to say much more about this deal. If this is your first deal, I’d spend my time looking for something else…something that will put some cash in your pocket.
JPiper