Posted by Arthur on August 13, 2003 at 09:49:42:
I can’t see anything in this…the rent is too weak to make this worth buying as a rental, and unless its in bad condition and the owner is going to be foreclosed on, you can’t hope on a short sale, and with those figures i doubt a worthwhile shortsale could be found.
What do I do with this house? Please help! - Posted by M. L.
Posted by M. L. on August 13, 2003 at 08:49:10:
I found a house in Central Pennsylvania:
4 Bed
2.5 Bath
1300 Sq Ft
Comps = $55,000 to $65,000
House next door sold for $55,000 in 2001. It is in worse shape.
Was listed with a realtor for $74,000
Owner owes $62,000 on mortgage and $3,000 on HELOC.
Currently rented to good tenants for $660/mo including nothing. This is standard market rent for the area, so raising rents much is not possible.
Re: What do I do with this house? Please help! - Posted by Gary (VA)
Posted by Gary (VA) on August 13, 2003 at 14:37:15:
Based on the scant information provided I am not so quick to write off this property. It’s been a long time in my area since you could pick up a single family home for only 8.5 times the gross income. If purchased with 20% down at a price equal to the total indebtedness, this could be a fine home to purchase and hold. Putting yogether a quick proforma based on only 3% appreciation and expenses which are reasonable for my area, I calculate a 10 year after-tax internal rate-of-return of about 16-17%.