Thanks for the help here is the other info: do not own another house. do not plan to live in, either way long term or short term will probably sell the contract because of the repairs neededI do not have any kind of REI experience. so the quick buck will be the best way I think.There is a lean on the property for 45,900the payments on the loan are $330. I hav not gotten that far into it about the other properties as I said I am very green at this. I would like to sell contract, any pointers on how to find a buyer
I have only been reading this site for a couple of weeks and love it but i have a scenario for all the experienced REI. A friend of my came to me today and asked me if I was interested in buying a 4 unit apartment building. The building is in pretty bad shape but all 4 apartments are rented from hud they rent for 300 a month with a year contract, he will sell on a land contract for 45,000 had it appraised last year for 49,000 wants 5,000 dollars down with payments to be worked outhe mentioned just the $400 dollar mortgage payment till paid off till the 40,000 dollars is paid off but the terms are not set in stone we can work that out later can anybody help me with some pointers to make this decision a little easier
What is your situation? Own a house already? Plan to live in one unit? Plan to hold for the long term? Plan to resell soon after fixing up? What skills do you have in fixing properties?
The rent compared to the suggested purchase price is absolute great. If you are getting about .8% if the property value or more in rent every month, it will probably be a money maker. Here you are talking $1200 a month on a $45K purchase price. You will be spending money to fix it up for several months, it sounds like. But a lot of that fixup cost can come form the rents, especially i fyou do a lot of the work yourself.
Now, is their a loan on the property already? What are the payments like?
How does this property compare to other similar properties available on the open market in terms of price, condition, rents? If the other properties are an even better deal, you need to drop the price on this one or buy one of the other ones, perhaps needing less work. If it is much better than typical deals, tie it up with a contract. Then do you due diligence. You do not steal in slow motion.
If necessary, and it is a very good deal, you could resell your contract to somebody who is more experienced at fixing up properties.