Deal Of The Century
I've been renting the big half of a duplex while trying to repair my credit to purchase a home. My Landlord stopped by on a maintenance call and after talking with him I discovered he is looking to liquidate. Other half of duplex is rented. $700 a month.
Advice for purchasing this property, please.
Av. sale price in this neighborhood
$150,000. $925+$700 current rent.
Thanks in advance
Find out what he needs and give it to him. Try to get a deal on it, and as much cash flow as you can. Will probably be negative with you living in one half, but it's better than paying rent. Try to buy it Sub. to.
....and by the way, why is this the "Deal of the Century"???
Deal of the Century.
How often do you have someone walk up to your door and offer to sell you a duplex, when you haven't done any real estate deals before and are presently looking to purchase. Right now with the other half rented and bringing $700 to the table that pays taxes and maint. and my rent pays the majority of the mortgage. 2-3 years from now have equity and rent the big half out and have positive cash flow.
Looks good to me.
Not to burst a bubble I hope you have a good thing going but you better just check on the other side to see what condition it's in. Also have you found the roof, floors, electrical ect to be up to par? How about any title leins may want to check the courthouse - the guy could be not paying taxes/mortage. If you were to suffer 5000 in damage to the property will you be able to cover it? Have you accounted for all expenses, Property insurance, PMI(with < 20%), any free util, maintence, upkeep, mortage payment ect. On the good side if the loan is assuameable you may be ok but could be better with a owner occupant note or if the seller would hold a note and hold payments in escrow it could also be nice. Another option may be a lease option, you could essentailly remain a caretaker and drop your rent nicely while locking in a good price if things are appreciating well. I am just scratching the surface with what could be done.