Is this a good deal or not? - Posted by Kevin(OK)
Posted by Kevin(OK) on November 24, 1998 at 10:40:22:
Out of town owner of a house that has been listed with a Realtor for 1 year (expired). My comps say it is worth $171,600, owner says appraisal came in at $167,000. The problem is this house needs $10K in foundation repair (20 piers, I posted this info. on the newsgroup last week). The above mentioned appraisal, was done before any visual defects started to show. I offered the owner $120K as-is on a L/O for 5 yrs and $1,100 per month (his mortgage payments). The owner is motivated due to the fact that he is paying two mortgage payments. However, he said he couldn’t go that low, and doesn’t know about the L/O. The owner would rather rent it out and have me manage it (I do not have a RE license) for $250 per month fee. The house next door to it rents for $1800 w/a pool. This house doesn’t have a pool so I am figuring $1600 rent. The owner said the lowest he could go is $130K, and he will have to talk the L/O over with his wife (he became more interested in the L/O as the conversation went on). Is there any other alternative here? Is $130K too much? No option money was mentioned and I made my offer contingent on finding a tenent, so my up front $$ risk is limited. If I am getting good terms, how low on price can I go?