Help with offer on 3-family - Posted by SteveM(MA)
Posted by SteveM(MA) on March 23, 1999 at 09:27:43:
I’ve ready to make an offer on a local 3-family needing some work. The property only has one inhabitable unit at the moment, the other two need work. Here are the specifics:
Asking - $99K (owned free and clear)
FMV(recent sales) - approx $110-120K
Market rents - $550-600/month
Work needed - $20K? (roof, two bathrooms, rebuild back porch(2-story), heating system (2 floors), electrical upgrade, paint/wallpaper)
I plan on making three offers:
1.) $49K all cash;
2.) $10K cash/$44K owner
3.) $59K all owner
My exit plan is to flip if I can find a buyer quickly, or rehab and hold otherwise. I figure that I can put someone in the liveable unit immediately to help carry then place while the other units are rehabbed.
It’s customary here in MA to use two REALTOR approved forms, one for the offer and another for the Purchase and sale. I don’t want to use this offer form since it doesn’t provide for owner financing, it only has spaces for earnest, down payment, and due at closing amounts.
- Does anyone have a simple offer that they can send me similar to the one Scott Britton dictated to us at the convention? (Now I know why he made us pass them all up to the front)
- Comments on the deal?
(Steve C. - this is the one that we discussed at the restaurant a couple of weeks ago)