Need suggestions on l/o deal - Posted by Jay

Posted by JohnBoy on April 25, 1999 at 24:51:16:

What is your real job? Where does your income come from?

$1600 a month on a $127k property sounds high. What do you plan to do with it? Live in it? Rent it? Ect.?

What can you rent it for?

Based on your post it sounds like he’s asking retail for the property. What is it worth? How much would all the repairs cost you to fix it? What would it be worth if you fixed everything?

You say the seller will give 10% as a rent credit. Who came up with the $90?? 10% would be $160.

The upstairs is renting for $550. How much would the downstairs rent for?

You don’t buy properties based on what they MIGHT be worth in a couple of years. You buy property by making all your profit going into the deal when you buy.

Can you L/O this to someone else for at least $1800 a month and get $5k - $10k down with an option to buy at $137k today in it’s current condition?

Need more details on this and what your plans are for the property if you took it.

Need suggestions on l/o deal - Posted by Jay

Posted by Jay on April 24, 1999 at 15:11:38:

Just got done looking at a house that seems to be a good deal. I only have one problem. The owner insists that I have a verifiable job. How can I get around this?

Terms: asking price 127,000.00
consideration: negotiable
rent: $1550 (actually $1600, but giving $50 a month lawn snow rebate)
monthy % towards down: $90 (he says 10%, but that doesn’t compute)

House is actually legal 2 flat with a steady $550 a month income on apartment. Main house is 3 bed 2 bath 2 car brand new garage.

Right away I can see potential on doing a quick clean up. Looks like new aluminum siding, but many windows need repair. Some time spent doing landscaping wouldn’t hurt either. Also needs new fencing.

Presant RE values in city are climbing at 5% in my town. (That’s low for area, city just one block north is at 9% and city just east is at 7%) Owner says he won’t bump price on 2 year fix price of 127K at 5% that would be worth 140k in two years. (any fix up of course would increase that value)

Any suggestions on how I can get past the seller insisting I have a “real” job?