Is this a good ASSUMABLE deal? - Posted by Daryl

Posted by Glenn-OH on May 21, 2000 at 19:51:07:

What is your goal in real estate? Does it include running a boarding house? This is buying a business with some real estate attached, not just real estate. So, unless you want to be in that business, don’t do it.

Is this a good ASSUMABLE deal? - Posted by Daryl

Posted by Daryl on May 21, 2000 at 19:44:25:

Hi everyone,

I am new at this and want to get my first deal out of the way.

Called on an AD:

  • She wants $1500 down and me to assume the mortgage

  • 5 bdrm/2 bth Boarding House

  • Good Condition with no repairs needed(It was apparently converted 2 years ago into a Boarding House)

  • Loan amount:$90,000 int: 8.05% locked in for 5 yrs

  • Loan originated Jan./2000

  • Monthly payments: $778

  • Does not pay TI with mortgage pymt

  • property tax: $958/yr and Insurance: $540/yr

  • Appraised at $95,000 “Before” house was converted

  • Water tax: $190/yr and Sewer: $193/yr

  • power bill: $80/mo (oil heating)

  • fully occupied: 5 x $250= $1170/mo in rents(room for increase in rents)

  • said I could negotiate her furniture/appliances to stay there : maybe with her carrying back a 2nd with a low int. note for xx months?

  • She is moving to Quebec

I was thinking to convert the Dryer into coin operation because she says they use the Dryer a lot more than washer(understandable) ie: other income!

Did not see the place yet or figure out comps(which would probably be a little hard since it’s now converted into a Boarding House.

I’m just wondering before I get inspection, title search, appraisal would this be a good buy and hold depending on my market or would I be able to Retail this for a profit?.

I know you usually want more info when people post,I do apologize, this was my first nervous call and I’m not sure if this deal is too skinny or if it’s worth my time and effort to go see the place.

Thanks everyone!!
Would Appreciate your thoughts on this!