trying to make first deal bear with me. - Posted by M Ryan

Real Estate Investing
1

Posted by M Ryan on June 07, 1999 at 07:19:02:

Kinda thought so but had to have independent opinion to keep my brother, who will be buying with me, satisfied.he realy wants to buy and fix up.

Thanks guys.
Mike Ryan
Lakewood, CO

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trying to make first deal bear with me. - Posted by M Ryan

Posted by M Ryan on June 06, 1999 at 17:39:00:

I have a chance to buy the duplex I am currently living in with owner financing. The tax appraised actual value of the home for 99-2000 is $93,000 with taxes of approx $750 per year. The two units combined rents are currently $1325 per month and could support perhaps $1600 or more with minor work. The owner is elderly (70 +) and has told me he would be willing to sell for $170,000 with 20,000 down(i belive he will take less down but not too much less). He claims to have an assumable 1st of 30,000 existing on the property with payments of $545 per month, which he wants to pay of rather than letting me assuming it, insurance of $400 per year and would take back a second at 9%. The owner is an investor with several rental properties(old single family homes converted to apts.) which he has been slowly selling. He is worried about capitol gains and security (will he get his money). Other homes in the area, including a few other duplexes, are selling for 160 to 200 thousand and there are several rentals on the s

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Re: trying to make first deal bear with me. - Posted by MikeO

Posted by MikeO on June 06, 1999 at 23:24:36:

Hey M,

The tax appraised actual value you are speaking of is different than an actual appraisal. The term for taxes are assessed value, for the township to establish their tax base. An appraised value is the current market value of the property.

You should never use the tax assessment to value a property.There is too much of a marginal difference.
Hope this helps.

Mike O

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Re: trying to make first deal bear with me. - Posted by PBoone

Posted by PBoone on June 06, 1999 at 19:46:41:

At this point there is no deal here. At 175K even 165K your Return and cash flow would be negative.
If his capital gains is really the issue why not purchase under a Lease / Option he does not show a sell until the option is exercised.
Pat