Posted by TJ on March 10, 2001 at 13:00:22:
Don’t let great financing obscure the fundamental thing: Value. How much is the property worth? Are you overpaying for it. I recently started looking at preforeclosures and was thrilled when I immediately came across a duplex owner who just wanted out. The problem was, they were upside down i.e., low rents under rent control, deferred maintenance, no equity, and a bad loan 9% that I’d have to take over. The wanted out because THEY overpayed. It pained me to pass on it, but the value just wasn’t there. But - if the value checks out, go for it and don’t delay!