Is this a good deal? Can I flip it profitably? - Posted by Ron M (WA)

Real Estate Investing
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Posted by Randy on July 19, 2003 at 14:55:01:

Seems to me you have to decide if you want to purchase & hold for long term rental or flip for cash. Since you say you can qualify for a bank loan, purchase & hold the market value of the property is $86k so you?re buying it right.

You could flip it at retail using a Private mortgage or seller financed note purchased at closing in a simultaneous closing. If your ?buyer" has decent credit and 5% down you sell that note cashing out at $140K-$69k to your seller = $71k and no head aches. If you need help in this email me directly.

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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:

Hi Everyone,

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.

Thanks,
Ron M (WA)