Posted by Bill K. (AZ) on March 22, 1999 at 10:14:38:
First of all, congratulations!
Based on your numbers for FMV, this sounds like a good deal. Of course, you should always negotiate the best deal you can. But, as a rule, I believe that anytime you can get title to a property for a small down payment, in your case, a couple of back payments, some new carpet and tile repair, TAKE IT! Those expenses shouldn’t be more than about $3,000. Of course, this assumes that you’ll be able to rent the property for at least $734/month.
Since you are planning to L/O the property, you should be able to get option consideration of $3,000-$5,000 when you find a tenant/buyer. Hence, you recoup your up-front expenses quickly. PLUS, and here’s the kicker, you’ve got a $25,000-$30,000 payday coming when the tenant/buyer exercises their option.
I hope this helps. Good luck!
Bill K. (AZ)