What kinds of offers for this home? - Posted by Keith

Posted by Randy on July 03, 2003 at 09:04:36:

Based on those rental rates ($1100 + $525), 5% vacancy rate market value for investment purposes is $154,400 At the TOP Rental rates ($1300 & $650) market value is $192,200.

If the seller refinanced new money @5% 200k (giving him all his equity) PITI $1017 you L/O at that rate or buy sub2? If both units remain rented and no PROBLEM tenants for awhile, you can profit about $7k a year. Since he did a refi 11/02 and probably got some cash I?d PASS unless you want to live there and have the 2nd unit help pay the mortgage.

What kinds of offers for this home? - Posted by Keith

Posted by Keith on July 03, 2003 at 08:12:50:

4 bedroom Cape W/ in-law apartment ,3.5 baths
It’s located on a dead end street. It’s in good condition, not great, needs some cosmetic work- paint, carpeting.

Roof was done approximately 7 years ago.
Furnace was replaced back in December 2002, also have Central Air unit.

There is a mortgage on it W/ $ 152,000. left approximately.

It was assessed by the town 2 years ago for $162,000.

Refinance in 11/02 appraised for $205,000.

Owner needs to sell, don’t want to take a chance of losing
it. Also relocating out of state husband changing jobs.

Owner is currently asking $200,900 which based on comps is Full Market Value. Similar are in the 190-205 range.

Owner is going to purchase another house W/ the proceeds.
Owner would prefer not to do an Lease-option.
Owner currently rents out the in-law, for only $525.
Could get up to $650.

House rents in area for $1100-1300.
Taxes= $3400 annually

What more information do I need to get? What kinds of deals can be made if any?

Re: What kinds of offers for this home? - Posted by Brent_IL

Posted by Brent_IL on July 03, 2003 at 12:05:04:

I didn’t get out the calculator, but this looks just like any other seller wanting full FMV and cash-to-mortgage. What is in it for you other than the privilege of negative cash flow and a negative ROI on the down payment?

Even if you have a cash-flow investor in the wings, there’s nothing to work with unless the sellers are willing to reconsider taking a quick solution to their problem. I don?t think the reality of double payments has hit home yet.

Maybe a subject-to + $10,000 cash?