Investment Property..
My cousin purchased a 960 sq ft home and a duplex in Goldsboro nc.. the median rents are 400 each.. per mo.. is this a good deal if i was to purchase at 35,ooo
??
property taxes are like 1000 for both per yr and insurance is like the same 1000.00 .. He is moving to Europe and wants out.. The units are vacant and need repairs.. 10-15k
He purchased the properties for like 19K less then 2 mo ago.. and hasnt fixed em.. but still wants to sell and make $$$ too much if you ask me.. the bank orig wanted 38000 for both but he talked em down to 19K.. How should i handle this.. i hate to miss a deal.. I would like to have gotten it for 19K but now he is asking 35k how can i creativly get this deal.. he wants cash.. what is this worth in income approach..? am i correct by saying the higher the cap rate the less the property is worth ? how can i structure the deal ?
One rule of thumb. This is not set in stone but...
Charge 1% of the value of the rental per month for rent. In the are that I am from (NE Ohio and prior from westren VA) if you can do this then the house will have at least some positive cash flow. Charge less than this and cash flow will be difficult.
How bad is the condition of the house.
Every listing I have seen asks for "proof of funds". If you have the cash to go through with it, no one is going to turn you down...
Chris
redgilnc,
I see that you did not get an answer within your time constraint. How did it all come out?
BTW, submitting a copy of your bank statement showing the funds on deposit is sufficient "proof of funds". You did not need to wait for the bank letter of credit.
Oh, and Nuetrino-
$500 a month for holding costs? On a $650K home? You live in California- you must know better...