Thoughts On A Property
I'd like to hear some thoughts on a piece of property for sale. The property is a lot with a log cabin trailor in a campground assocation. The lot has running water, sewer, underground electricity, and cable TV. The ownership association has 300 camp sites. It's a recreation community which some use as a summer home, while others use it for weekends. Its a form of camping enhanced with all of the comforts of home. You own the land (a 70 foot diameter which is deeded to you) and share common areas.
The owner has been ill for the past 4-5 years and his site has been unused and not maintained for several years. The property isn't listed for sale but the owner would like to sell. The property is free and clear. Here are some numbers...
FMV $32,000 - $34,000
Taxes and Dues $1200 / year
Weekly rental $350
# of Rental Weeks Per Year 12-16
I am interested in renting the site weekly (my family could use it when it wasn't rented) and then selling in 3-5 years.
The lot basically needs some TLC and maybe $1000 in materials. Some of the waterfront properties sold for $42,000-$50,000 last year.
I don't want to take out a loan for the lot since it would have to be a RV loan and not a RE loan. What ways could I acquire this property and at what price?
Any thought would be appreciated. Thanks!
Based on the information in your post, if I were in your shoes I'd see if I could acquire this property subject to the existing financing. The Subject To forum should contain all the information you need, but I'll do my best to describe what you'd be doing. Basically, try to negotiate your best price with the owner. Remember to bring up that the property will require some fix up work, etc.
Now what you'd be doing is agreeing to make payments on the property to the bank, and possibly giving the owner some money up front. I'd try and give him nothing up front and see if I could just make payments on the property. In a few years time you can either get the loan yourself or sell the property to someone. That's what you'd be doing in basic terms. Now keep in mind I'd be using all the legal forms required to cover myself and the owner. I hope this gives you a place to start.
Ryan J. Schnabel