One Tired Landlord, Two Houses for Sale - Posted by Sandy FL
Posted by Sandy FL on April 28, 1999 at 17:45:04:
Guy wants out so he can go bum around Europe. He is concerned
about "What if your tenant buyers don’t buy, or they mess the place
up and I have to fly back from Europe to evict, or hire a lawyer, etc"
Seems hung up on the security issue, wanting fund$$ to make him
feel more “secure”. I told him that any “deposit” at all would
be minimal at best and not out of my pocket. I told him I would
take care of any issues, bad tenants, damage, etc etc. I don’t know
if he didn’t hear me or doesn’t believe I will take care of it. (haha)
He did agree an escrow account to handle monies would be good, and
if he was out of touch (ie, bumming around Europe) the accounting
could be monitored by his family.
The other thing that came up, is these two houses are free and clear.
That gives us more options and at the same time makes it more confusing.
I told him I would like to present him with multiple offers for each
of his two houses, and if one of them work for him, great. Had to keep
reinforcing the fact that he probably could not expect to get both his
price AND his terms. Would be willing to carry paper.
House 1 - Waterfront, 2/2(possible 3/2) with boat dockage.
Comps 170k Had an offer for 157k he accepted then it fell
through. Because of money he came out of pocket with for
House 2,he now he wants 170k again. Listing expires next
House 2- Medium income neighborhood, 3/1 with workshop,
spent last 5 months and 5k getting “professional tenants” out.
Could get 85k if held paper but won’t take 50K as is. Has already
ordered (but not paid for) $1000 in new windows and door the old
tenants took their anger out on.
Here is what I was thinking
House 2 - Offer 60k all cash, or 85k LO as is, no money upfront,
$700/month, 350/mo rent credits.
House 1 - 170k LO offer, 1200/mo rent, 600/month rent credit,
3000 option consideration if he insists, once a tenant
buyer signs. I was trying to come up with a fair price
for him if he was willing to carry a 20% second? Or a
split funding offer?
Any feedback/brainstorming is appreciated.