Thoughts on a $33,000 property??? - Posted by ron

Posted by Clair-MO on October 26, 2003 at 18:10:11:

Ron, Go with your “gut” feeling! Also, you haven’t given enough information on how are you going to purchase the property? This is going to be investment property, right? You are going to lease option to a tenant-buyer that has marginal problems with his/her credit. You do understand you do have some responsibilities for any breakage or fix-up costs, right?

Thoughts on a $33,000 property??? - Posted by ron

Posted by ron on October 26, 2003 at 02:03:38:

I have a realtor offering me an investment property in a not so great part of town. It is listed at $33,000 and from an initial walk through it is not in bad shape. She told me it’s worth $55,000 (and she has been right on the money before about estimates/appraisals). It is a 3/1 row home.

If everything checks out my thoughts are to buy it. I would pull money out at closing ($16,000). I would give the owner a downpayment of ($3,000), put $14,000 in my pocket, and l/o to a family who may not be able to get a mortgage so I don’t have to deal with tenants. Rents in that area are $600-$700. My mortgage would be around $375-$400 approx.

So…chime in. Does this sound good? Anyone have any experience with “pitfalls” on a property like this? Let me know.



Re: Thoughts on a $33,000 property??? - Posted by Brent_IL

Posted by Brent_IL on October 26, 2003 at 21:42:55:

  • If your agent listed it I would disregard the $55K value. If she knew it was worth $55K, she would have listed it at $50,000 to pick up the higher commission.

  • If she’s the selling agent, it could be a good deal, but to pull out cash via an approximately 90% LTV loan, you’ll have to mess around with the contract. Yes?

  • In a not so great part of town, the tenant part of T/B is emphasized. It?s not always a cake-walk.

The rent-to-market value ratio sounds good, but I?d ask around the neighborhood to see if there?s a reason for the $20,000 disparity in price.

Re: Thoughts on a $33,000 property??? - Posted by Arthur

Posted by Arthur on October 26, 2003 at 18:42:57:

$33k property paying 600-700 a month rent? I’d buy it and rent it out. Thats a healthy return. But it all depends on if you want to become a landlord.