Posted by Nathan on March 03, 2001 at 17:46:53:
Thank you very much for your help. I was thinking that a Lease/option would be the best thing to go with. I just wasnt sure. I will get started on this deal first thing Monday.
Nathan
What would you do? What should I do? - Posted by Nathan
Posted by Nathan on March 03, 2001 at 04:19:14:
I found a 5 unit apartment building with 1 bedroom in each apartment with a store in the front. 3000sq.ft of apartments 1000sq.ft of store. Coin laundry that makes about $100 a month. Rents all ad up to $1375 per month. I think there would be room to raise the rent for the store since they only pay $275 per month. His asking price is $79,500. He has a non assumable loan on the place for $20,000 which he pays $329.64 per month. There is a balloon payment due in 2004 to pay it off. He is willing to take a second for his equity of $59,500. I asked him about a possible lease/option and he said he was open. How should I work this deal?
I was thinking that mabe I should try to get it on a lease/option until the balloon is due in 2004. Then try to find financing to pay off the $20,000 and give the seller a 1st for his equity. Or mabe I could sell it for a profit before my option would expire. Now if I can get it on a lease/option there is $1375 in rents every month and the owner only pays $329 should I pay more for rent every month and just build credits toward the purchase price or should I try to pay less for rent and put some money in my pocket every month? The seller seems pretty flexible. He lives in Oregon and the property is in Washington
You know how the story goes. I have no money or credit bla, bla, bla. What would you do?
Anything will help. Than you!
Re: What would you do? What should I do? - Posted by Potash
Posted by Potash on March 04, 2001 at 12:07:59:
I would save my money before I would waste my own, and other people’s time.
Re: What would you do? What should I do? - Posted by JoeS
Posted by JoeS on March 03, 2001 at 08:18:45:
Any time you can tie up a property with a positive cash flow, in a good area, on a property that seems it will go up in value, it is a good thing. Start with a low offer, meaning nothing out of your pocket. Use the rents as your down ($1,000). My rule of thumb is: The more flexible the seller, the more I will pay (It is not mine, I read it somewhere), up to a point. Try a lease option on the place, paying him so that all his expenses are covered. Hope this helps.
Re: What would you do? What should I do? - Posted by Nathan
Posted by Nathan on March 04, 2001 at 15:27:13:
What do you mean? Are you saying that the deal is not worth it or are you saying that I will be wasting the sellers time?