Posted by Mark (WV) on January 25, 2002 at 11:24:43:
I really don’t know where it is located.Just working off pics and a person that has been to the property. My exit if the deal goes through will be to sell the house with about 100 acres to a buyer allready on the shelf.
I was thinking that the land value would have to be at or above 1000 per and any house that is brick here that size would be about 100k,so that was what I was looking for a round figure for the land value.
At your guess of 1 to 1.2 per I should be all right.When I made the offer they had asked for 250k and mine was for all cash at 170k, so the only way I could lose was if land would fall to the level of around 500 per.
What I was thinking was that if the land was good for about 800 and the house would come in at 100 with about 15 in repairs.
So this is what it would look like,
Land @ 800 per = $128,000
House as is $ 42,000
total price $170,000
Sell @ 100 acres at 1200 per = $120,000
with house before repairs = $60,000
Total sale $180,000
Land remaining 60 acres ? $
I was just afraid when I go to the place in about a week land would be worth 100 bucks an acre !
I have it sold geting 50 k down and bank money for the rest if it appraises out at the above figures.Should do well having the 60 ac. left over for the real profit,like you said if nothing else the timber should be worth 5oo per ac. so that would be all profit.
Thanks to all