Posted by Ronald * Starr(in No CA) on August 14, 2003 at 24:47:09:
Fin------------------
Gee, that sounds like a very high rent for a property of that value. This probably is a good “keeper” property for cash flow. However, that amount of fix up is pretty extreme just to buy a rental.
I’d be looking at other properties in better condition that are for sale in the area. See if you can get such a good rent ratio with them. Then you won’t have to do so much fix up.
Good InvestingRon Starr
How high should i go? - Posted by fin
Posted by fin on August 13, 2003 at 21:06:38:
A bank owned 3 bed 1 bath twin that needs about 12-15,000 in repairs. FMV from 80,000-90,000.
The bank asked 45,900, we put the bid in for 41,000. There are 3 other investors bidding and now the price is pushed up to 52,000.
While the property itself has a lot of potential, many houses in the area has been turned into duplexes and many of the remaining houses are owned by ‘senior citizens’. (The municipality told me this house is too small to be turned into a duplex). So now I am considering two exit strategies. – buy it, fix it, and sell it or rent-to-own (the market rent is at 1,200)
My dilemma is should i still bid on this property (i am thinking as high as 55,000). The margin is tight but i have been trying to get my feet wet for the past two months and i am getting ‘anxious’ to get my first property.
Do i be patient or should i take the plunge?
fin