Owns FREE & CLEAR! Need Deal Advice! - Posted by Adam (BatPro)
Posted by Adam (BatPro) on October 21, 1998 at 20:41:46:
3 bed - 1 bath, 2 bed - 13/4 bath duplex.
Total rent is $950 / month.
Tax is $1,700/year
Duplex is in good shape i.e. completely renovated in 1985.
FMV $80-82,000. Other duplex’s a little newer a few blocks (same rents) sell for $85-89,000. Duplex is in good area and is close to grade school and rents quickly.
Seller has no mortgage (owns completely). Both units currently rented: side a rented the past 2 years by same individual and side b has a new tenant.
- Does not need or want a large sum of money because is he is worried about Uncle Sam.
- Is willing to do creative financing of some kind.
I gave the seller a copy of a lease option and he seems open to a lease option. However, Is a lease option the best deal for me?
Purpose of wanting to purchase: I need an asset and would like a little Positive Cash Flow! I smell opportunity since I am currently unemployed.
My question is: What is the best deal for the seller and myself. We did not exactly discuss an exact price but he is open to various financing techniques since he owns the duplex free and clear. He is just worried about paying taxes on the money if he sells.
Seller owns 20 properties including commercial, residential, a 10 unit, and a 6 unit apartment complex.
Seller has been thinking for selling for sometime because he wants to get rid of his residential and specialize in commercial and he does not like the thought of sales people getting a commission. I found the seller through a for rent ad.
I presently do not have job so a mortgage may be tough. What about 60/40 deal? Or Land Contract? Or ?
Any advice given would be very appreciated!