Posted by Tim (CT) on February 04, 2002 at 07:47:18:
Ron, you’re definately right. The intent of my post was to gather a bunch of properties to compare to vs. just one. As I re-read my post, I don’t think my words portrayed my thoughts as clearly as it probably should have.
Need CREATIVE SOLUTIONS for potential 1st deal! - Posted by Teresa (in Calif.)
Posted by Teresa (in Calif.) on January 31, 2002 at 19:20:58:
HI There CRE readers,
I called on an ad for a property located in Irvine, CA.
The seller bought this condo (1+loft/1ba.with water view)about six weeks ago and has been trying to rent it out. Now he wants to try to sell it or rent it out whichever comes first. He is asking $155,900. Association fees are $175/mo. He says rents can go for 1350./mo. (???)
He is also offering it as a lease option…he wants 10K down for the l/o and his mortgage payments (he says) are $1200/mo.
We got cut off by his cell phone but he is calling back this evening. He says he is a mortgage broker.
QUESTION: What kind of deal can I work out with him without forking out a cash for the down from my own pocket?
How would I l/o this? How could I help him and get cash for me too?
What other information should I get from him in order to make an informed decision. He is getting calls to buy on it alot but not to rent it. Your help would be much appreciated. Teresa
ERICH in Seaside, CA if you read this give me a call please. Cell: 831-238-2281
Bail on this one… - Posted by Tim (CT)
Posted by Tim (CT) on February 01, 2002 at 12:46:42:
I am certainly not a “guru” on this board but my feeling is that you don’t have a motivated seller here and I would move on to another property. He wants 10k up front??? That’s almost 10%!! Also, for future reference, I wouldn’t (and, maybe you already know this) trust a sellers information when it comes to Market values for home prices or rents. Do your own homework. It’s easy to check out rents. Just look in the local newspaper. Find a couple of properties that are in the same area that have the same characteristics and drive by them. If they look as though they are in the same condition as the one you’re looking at then you probably have a good property to compare to.
Good luck.
Re: Bail on this one… - Posted by Ronald * Starr(in no CA)
Posted by Ronald * Starr(in no CA) on February 01, 2002 at 21:21:25:
Tim–(CT)-----------
While I think you gave good advice here, I would propose a modification. I would suggest that it would be better to look at at least a dozen rental properties if at all possible. Maybe even some from the last three months advertisements in the newspaper/online listing service.
I studied statistics and having just a couple of rentals to look at risks having atypical ones and thus maybe erring in setting a market rent. A dozen or more examples will narrow down a lot the range for the average rental, giving more accurate figures. Rents are an imperfect market, with some too high, some too low.
Good InvestingRon Starr**