Posted by John G on September 15, 2004 at 22:26:45:
Market? - On fire!! 14 offers came in within hours after my offer was accepted in writing. House was on market 1 day. Neighborhood? Paradise U.S.A. (well…for some people anyway) Rent is in the $600-800 range for 2 bed 1 bath. This describes the house for now. Attic upstairs can convert into 2 more bedrooms and a bath. 4 bedroom 2 bath in this area goes for 225k+ for a spec home. This is on a half acre with a stream running through the backyard with salmon in it. Maybe a fixer/flip is a good idea! Thanks!!
??? In process of purchasing 1st rental property - Posted by John G
Posted by John G on September 14, 2004 at 23:00:58:
Greetings,
I’m in the process of purchasing a 100 year old house for a rental. After the initial walk-thru…well it needs CONSIDERABLE work. The price is o.k. $99,950…but it needs at least $15k in repairs. This is a sellers market. I have to drop 10% on the down payment. This will tap me out as far as funds. My ? is, should I counter my last offer after the formal inspection reveals all the work to be done (in 3 days), or should I begin negotiations now? Can I ask for a larger mortgage from the lender to offset the repairs, or is this taboo? Thanks in advance for any help.
? In process of purchasing 1st rental property - Posted by Chris
Posted by Chris on September 15, 2004 at 08:31:31:
Well, what makes you think you are getting a good deal? Please share the market rent / neighborhood / demand for this type of housing… Financially, what good will the purchase do to you, unless you can raise the additional $ 15,000 needed? ** Personally, I wouldn’t cut corners and do quick fixes. But you might be handy and able to do a lot yourself? ** I’m selling >30 units and man, it’s not all profits and roses ;-((. COSTS: escrow, fire insurance, mortgage fees, taxes p.a., the unexpected (Murphy’s Law) and always the very imminent danger of bad screening. Screw up and it may well cost you thousands! ** how long has the house been on the market? Would the seller carry paper? Have you shopped around? Do your homework and expect it may take a few months to rent. So be careful and don’t go bankrupt over it - you may wish you had kept that 10% downpayment and your present credit score11… BUT if it’s a rare deal, if you get a huge discount to FMV, you might consider just fixing it up nicely and flipping.