Need your opinions on this possible deal… - Posted by JB in MD
Posted by JB in MD on March 01, 2001 at 22:15:18:
It’s been a little while, but I am back working some deals. This one I have been wrestling with for about a week now.
House is a 2/1.25, two story built in 1916 on a nice plot for being int the city. The neighborhood is kind of odd, with beautiful fully restored homes right next to shacks. Lady who owns it bought it from HUD 3 years ago for $72k. The loan totalled about $110k which included extra funds for rehabbing. She says she put the money in to the property, but it still needs quite a bit of work. The repairs that she undertook apparently became rather expensive. They had to jack up the house and install a steel beam to strenghten it. She did put down a new hardwood floor and upgraded the kitchen a little. She also apparently had several months with no renters that she covered with some of this money. Regardless, she has none of it left. Right now the mortgage stands at $108k. The only reason I think this may be worth pursuing is that 3 years ago the appraisal came in at $135k. Comps in the area range from $101.5k to $149k. This being the case, I am considering a subject to deal. The reason for this is that the lady really wants out and is very motivated. Her job keeps her out of the country a decent amount of the time, and she doesn’t feel that she can manage the place. She is going into her third month (third payment) now with no renters. The place still needs a decent amount of work, ie. a few broken windows, MAJOR cleaning, miscellaneous painting and maybe some upgrades to the kitchen and bath. The furnace is new, as is the electric upgrade. So I was thinking of selling with owner financing as ‘handyman special’. I asked the lady if she had any money to come to the table with to help fund the work that needs to be done before it is shown and she said no, but that she would ‘do what she had to do’. Maybe I could get $500-1000 from her to try to take care of some of the more noticeable issues. Any way, who among you would chase this deal? Or do you think it even looks like a deal? The last thing to consider is that the property is about 35 miles from my house in another county. All responses appreciated!
God bless and thanks in advance,