Posted by Daryl on May 22, 2000 at 17:05:23:
Appreciate the HELP!!
L/O deal (is it worth it on this home?) - Posted by Daryl
Posted by Daryl on May 22, 2000 at 13:25:09:
Hello,
Could you tell a newbie if this deal is too skinny.
Ad reads:
Lease to Own, $3000 down, $500/mo, $55,000 , completely renovated.
Well I went to see it. It’s been Vacant for only about 4 months. Needs paint on outside. Maybe new windows through out, but everything else looks all updated in this old home.
I’m not sure I could get much more than $500 rents on this property. Haven’t really checked on rents yet in area but just looking at the old street and houses (I just can’t see it being much more)
Even if I could charge $600/mo would I still have a deal?
I would want to Sandwich L/O this house.
He’s asking what it is appraised at. $55,000 with the new renovations.
He is an investor and does not live in this City. He says he’s got lots on his plate right now and is trying to get rid of a couple properties.
Should I go for it? Would be my FIRST deal.
How would you guys structure a deal like this?
THANKS SO MUCH!
Daryl
Re: L/O deal (is it worth it on this home?) - Posted by Ron-Va
Posted by Ron-Va on May 22, 2000 at 16:33:12:
Hello Daryl,
My suggestion to you would be to pass on this deal. You can find deals where you don’t have to come up with option consideration (down payment)by finding owners that need your help. This property you say may need windows etc plus finding a Tenant Buyer for this type of house that will be able to give you more option consideration than you gave upfront may be difficult.
Never get so anxious for your first deal that you convince yourself it might work. Please keep looking and studying and you will find a deal so good you will be telling us all about it here, and we will be asking you questions about how you found it.
The good deals are out there keep looking!!
Ron