Re: lease/optioning a forclosure - Posted by Kris
Posted by Kris on November 05, 1998 at 22:23:39:
According to the info faxed to me by the broker, it was schedualed to be auctioned off on 9/27/98. That was a couple of monthes ago and it was still listed as of the time I got the info faxed to me. He, the broker is checking to see if it is still on the market. As of this moment I’m not sure if its been sold or taken back by the bank. I’m waiting to hear from the broker.
So, if its taken back by the bank, then there is no chance of a no money down offer, short of finding and individual with a lot of money? If this one falls trough, then there is still the 6unit that I was considering earlier for 310k that was formally 340k and it is a for sale by owner, payments current. Maybe I can do a leas/option on this one. The units are all rented with long standing tenents. They are two buldings. Bulding 1: total operating expense and ins.+ $1,765/mo. mortgage pmt. comes up to $2,777. Total rents from the 6 units of that bldg. (and rents could be raised)are$3,985/mo. Building 2: total operating expense and ins.+$1,797/mo. mortg pmt. comes up to $2,902 and the total monthly rents from its 6units (again rents can be raised)are $4,425/mo. I just talked to the seller and Iknow that he has had this property for about10 yrs and the 30 yr.assumable 1st. mortgages (on bldg1:$224,010; bldg2: $228,099, both @ 7.375% adj.)are pretty much principle pmts, not intrest pmts. with only 20 more years to go. I’m still waiting for the comps on this one to justfy the asking price.
I know that I kinda switched properties on ya but I really want to make this work. I don’t want to own property in the begining, I just want to get in and flip it to another investor interested in owning, and my possibly coming out with a few extra coins in the transaction. Do you think that the lease/option would work on this property? Suggestions would be very much appreciated. Thanks.