Posted by Ken (ILL) on January 27, 2002 at 21:37:47:
Please trust me on this one… DON’T do any repairs on a house if you don’t have a clear title in your possesion!!
What you are doing is GIVING the repairs to someone. If they decide not to sell for any reason, like when the lease is due, they get all of your work for free!
The only solution to doing work on a house whose title you don’t own is to put a mortgage on the house for the price of the repairs. This is something that you and the seller need to work out prior to your doing angthing to the property.
The other thing I see here is lack of enough “headroom”. If comps are in the 70-75K range, there will need to be 10K in repair, (usually some extras creep in, too) and then you need to do any transfering fees… no money left for you!
I am about to make my first offer on a property I have found in FLORIDA. I have some questions to make sure I have everything streight.
Here is the Info.
I have located a vacant S/F house with out of state owners. It has been vacant for about 10 years. It needs aprox 12-15k in repairs to bring it up to fmv.
The comps in the area are 70-73k. I asked the owners what they would expect if the house was repaired and they gave a figure of 60k. The owner is flexable. The house is paid off.
I want to offer 60k as is with a lease option with nothing down. I then want to lease option it to a buyer, say 70k and 5k up front.
Questions: in Florida will the owner sign the deed over to me or hold the deed, and is there closing costs?
On a baloon how do you come up with a monthly payment?
Should I do any fix ups at all other than cleaning or just offer a handy man special, rent to own?
Do the sellers have to report this income as c.g.?
Is there any other costs that I am over looking and if so what?
What about insurance?
I would appreciate any ideas or comments. Thanks in advance.
Robert.