Posted by Brent_IL on October 02, 2003 at 16:32:57:
1- It isn?t enough to believe the loan is assumable. You have to know if it?s assumable before you make your offer. Very few loans are still assumable. From the LTV ratio, I?d guess that the loan is too recent to be assumable.
2- Do houses that are similar to this one rent for $550 to $600 a month? If they do, you will probably get the same rent rates that they do. If not, you are going to get market rate.
3 - I can?t see the owner taking the offer as presented. You might get him to sign over the place because he doesn?t want to deal with it, but it?s unlikely that he?ll pay you for the privilege. At the bottom range of $58,000, he could pay a commission and closing costs and still have money left over. My thought is that if they are making payments for a year with no incentive to list with a real estate broker, they have no immediate need for cash flow. He could list it for another year and come out ahead of your offer. Making a reasonable offer isn?t as important as making an offer that the parties deem workable. The only way to do this here is to talk with the sellers to see where they?re coming from.