Some more information? - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on July 30, 2003 at 21:44:57:
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.
Good Investing*Ron Starr