Is this a good deal? Can I flip it profitably? - Posted by Ron M (WA)
Posted by Ron M (WA) on July 19, 2003 at 14:10:26:
Found a property that I am thinking about buying and was looking for your input.
Here are the vitals:
Year Built 1959
Tax Assessed $79,700
3 bedroom, 1 1/2 bath, no basement (these are common in my area.
Owners are elderly and need to sell to get into a retirement home, pronto.
After repaired value = 89,000 - 93,000
Needs carpet, interior paint, water on the lawn and the weeds pulled. Also has an 80 amp fuse box instead of a circuit breaker box. Cabinets are vintage 1960. The home has a family room that can be converted to a 4th bedroom quite easily. With just some minor clean-up it could rent for about $650 / month. With the additional bedroom the local housing authority would allow it to rent for $800 per month.
Owner wants $69,000 for the property. An identical property next door sold for $77,600 in December, 02, but it had to have new roof put on and it was in poorer condition. The local market appreciation has been about 5%, on average, since then.
Looking for a strategy for both creating cash flow and/or capital gain. The owner doesn’t want any remaining ties to the property. I can qualify for a bank loan. Not sure the best place to get Investor loans. Would like to put down as little as possible in order to keep what little cash I have.
I am looking for any and all advice regarding which strategy(s) I should consider with this property and how to make it as profitable as I can without taking advantage of anyone. The owner has already told me that he believes he is $20,000 below fmv, but is anxious to get moved into the retirement home because his wife and he are taking turns in the hospital every other month or so.
Ron M (WA)