Posted by B.L.Renfrow on June 21, 1999 at 20:11:46:
…“Pass” would probably be a good choice here. You’re talking about a property priced well over comps, with a not-very-motivated seller (he owns it free & clear, and he’s an investor, so it’s doubtful he has any real pressing need to sell). Plus, I’d be pretty wary of an investor-owned property. He’s probably not dumb, and I always wonder, when an investor is selling, what he knows about the property that I don’t. You could always give him a low-ball offer, see if he’ll give you an option for 90 days or something like that, and see what happens. If he accepts it, you’ve got some time to market like crazy and find a buyer.
Well, I finally took my first step and called on a FSBO ad. Here’s the info–3/1 1100 sq.ft. ranch on a slab, lot size 160X600; asking price is $52,500, recent comps show average mid to upper 40’s for similar homes sold. It is owned free and clear by an investor who previously rented it out for $550. That’s a good conservative rent for the area. The previous tenants recently moved out. The home is now vacant and he wants to get out of the rental business. The roof and the heating system are new within the last four years. I haven’t been in the home, but it looks good from the outside on a drive by. My objective is to buy and flip, but I would consider other alternatives that will bring a good cash flow. I’d like to do a nothing down deal. What is my next step? Thanks for any advice you can offer.