Posted by Jasonrei on August 11, 2003 at 24:42:26:
You know, it all depends on the specifics. Just a superficial look at this deal, though, would make me wanna walk away from it if I didn’t get the repair money. As exciting as it is to make a deal, a bad, borderline, or even OK deal makes you feel worse than a good deal makes you feel good, Know what I mean?
is this a deal to get into? - Posted by Joe (Oh)
Posted by Joe (Oh) on August 10, 2003 at 17:15:12:
the house is worth 95-100k, the seller is willing to take 86k, and is located in a not so good area(borderline warzone). and is currently rented out to a section-8 tenent. the mortgage payment is 860, the tenent pays 375 and the S8 takes care of the rest. and needs about 3k in repairs. is this something I should get into? and if not, how do I tell the person trying to sell to me that I dont want to buy it without insulting her or whatever…
Thanx-
Don’t worry about insulting… - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on August 10, 2003 at 22:50:05:
Joe–(OH)-------------
Don’t worry about insulting the owner. Just explain that you don’t see the value in the property for yourself. Just don’t criticize the seller’s management or decision to buy the property.
Good InvestingRon Starr**
Who says it is worth 95 to 100K…? - Posted by JT-IN
Posted by JT-IN on August 10, 2003 at 22:12:44:
It is probably not, and may not even be worth the 86K, speaking FMV… if in a fringe area. You definitely shouldn’t be looking to buy something at FMV…
A Section 8 rental, in a fringe area, isn’t worth 100 time it’s monthly rent… period.
I think that you are operating on some misguided info which is leading to an erroneous conclusion. Sorry for the blunt advice.
Just the way that I view things…
JT-IN
Re: is this a deal to get into? - Posted by qstaff
Posted by qstaff on August 10, 2003 at 22:05:00:
I’ve made good money buying on the border, but you have to have a feel for which direction the neighborhood’s going; but, “bad areas” aren’t necessarily bad investments–hence the term “slum lord.” I think the other post suggesting the seller pay for repairs sound good. Also more details in general. If you want to say no, just say, “No thanks.”
Re: is this a deal to get into? - Posted by Clair-MO
Posted by Clair-MO on August 10, 2003 at 18:24:16:
Simply state the truth of the matter that “the home is in a bad area and you don’t buy in bad areas!”
Re: is this a deal to get into? - Posted by Jasonrei
Posted by Jasonrei on August 10, 2003 at 18:22:23:
I wouldn’t pay the $3000 needed for repairs. That’s what I’d tell the seller.
If I could get it “subject to”, with a breakeven or better cashflow, and with repairs taken care of by seller, then this would probably be a deal.
Re: is this a deal to get into? - Posted by Arthur
Posted by Arthur on August 10, 2003 at 17:30:33:
You haven’t told us what the full rent is, and if its your intention to hold and be a landlord.
Re: is this a deal to get into? - Posted by mo
Posted by mo on August 10, 2003 at 22:15:03:
Many sellers don’t even have the $3000.00 for the repairs, at least in my experience, and especially lately. What then?