Possible Deal - Posted by JHyre in Ohio
Posted by JHyre in Ohio on March 19, 1999 at 06:50:36:
Have several promising leads, with more on the way. One has me interested, to wit:
Small city 1/2 hour from here is composed of about 40,000 blue collar workers and low income types, split about evenly between the two. 60+ year old Gentleman in a teensey little burg about 30 Min from there is selling his real estate assets, which include 3 SFHs and 1 double in city. Comps indicate FMV of about $158,000. Price if purchased separately = $146,000. Talking to him, he said he let them go for $100,000 cash if purchased as one. Says monthly rents = $1,800 (22% GROSS annual return). BUT the three houses are empty “to facilitate sale”. Uh-huh. Said he had one sold for $46k but applicant lost his job, so it fell through. Don’t know how long they’ve been up for sale.
Doing due dilligence Sunday morning- will check 'em out, talk to neighbors about rental levels, etc. Also want Schedule E to veryify rentals. My impression AND reliable anectdotal evidence indicate that he is motivated. If his story checks out, I can get 10% down financing at 15y for 9% interest (PITI= roughly $1k/month). I will of course offer< $100,000. Gotta gauge the offer- hogs get fat, pigs get slaughtered.
If this works, I intend to L/O all of 'em ASAP. Should get flooded with calls in that area- not too much creativity in financing there. Owner will not L/O or carry- he wants CASH which is why he hasn’t sold all yet (He started with 8 properties).
Suggestions? Advice? Hate mail?