Questions would my time be better spent ? - Posted by Trev in Indiana

Posted by Jim Locker on February 22, 2001 at 10:21:00:

Only you can decide if your time would be better spent on something else.

You didn’t talk about the area this property sits in. I have to say that the price looks quite attractive. Either the seller is very motivated or the place sits in a slum.

Either way, it should cash flow pretty nicely. If it is a slum, you need to take the kind of tenants it will attract into consideration. If you want to flip it, you need to consider this also since it will dictate how much you can sell it for.

Questions would my time be better spent ? - Posted by Trev in Indiana

Posted by Trev in Indiana on February 21, 2001 at 14:53:02:

Here’s the deal in a nutshell:

3-unit dwelling, 2 levels, 3,000 sq. feet.

REO accepted price at $63,900

Traditional financing: 10%down-borrowed :slight_smile: (with 1 point, approx. $8,500 to close), 8.75% interest rate, 360 months, $452.43/month

New windows, siding, and roof last year, but there is NO carpet or tile throughout and it does need paint and 2 or 3 places need some drywall repair. Also needs 4 inside doors and one outside door replaced. Estimated Fixup at $6,000 to $7,000 which would be financed via credit card and take approx. a month to complete.

Rents were $500, $350, $350, which could be raised by $150 total after fixup. Tenants pay all utilities and utilities are both newer and seperated.

I think that’s about all…I guess I’m just wondering whether my time and financial investment would be better spent other places, such as in obtaining L/Os or “subject to” properties. I do have an “out” in the contract if I want. I also have one other 3 unit that I own and the management, which I really don’t mind, has been a breeze …so far :). Thanks for any input.