What Is The Best Way To Maximize The Value Of A House
My wife and I have a second home that we owe 145K. The latest appraisal on the house is 185K. We stumbled into this house as it was my mother -in-law's.
I would really like to hear some advice from the pros on this forum as what YOU would do to maximize the value of this property.
For example:
1. Should we just look to sell this out right the conventional way (Realtor)
2. Call a "We Buy Houses" number to see what they offer.
3. Rent the house.
4. None of the above.
We are really new to this but would like to get more involved with REI.
Thanks in advance.
Jeff
[ Edited by hjstewart on Date 06/15/2004 ][ Edited by hjstewart on Date 06/15/2004 ]
Jeff,
On the otherhand, if you want to make some money, don't call a "we buy houses" or us :-( and take this great opportunity you have to get a foothold into real estate investing.
If you sell the house, you do not produce any cash flow, just a net gain. If you can rent the house out, and still cover your PITI and repairs, and still have money left over from the rents collected, then you are probably doing okay.
Others here would sell the property and take the 40K and buy more properties with it.
If you do not mind selling below market and you really want to call a "we buy houses", just let any of us know first
HTH,
Robert
[addsig]
Call the "We buy houses" person, speak frankly with hin/her, and see what they'd pay for an assignable option to buy. Maybe you could negotiate an extra percentage at closing. Bone up on Rent-to-own and other Lease Option techniques and try that route. Put an ad in your local paper, including "terms possible" and watch the phone ring off the hook. Then sell it on a Contract for Deed with a balloon at two years. Tell everyone to come during specific time slots so as to most effectively use your time.
But learn a little more about all of this before you try anything outside of your comfort zone. Listing with a Realtor wouldn't be your worst option--though some might disagree--but why pay him/her $10,000 that you could pocket yourself, even if you have to wait a couple of years to do it?
Wow!!! 2 reponses in 30 minutes, you guys are great... Thanks so much for taking time out to respond..
Selling on a Lease Option is a great way to go. Usually you will get a better price and you will (or should) Cash Flow well every month untill the buyer does exercize his option to purchase, then you cash out with a lump sum. If your buyer decides not to purchase keep his money and do it again.
josh
[addsig]
If you have good credit, you could look into a cash-out refi with an interest only loan. This could give you an opportunity to pull some cash out of the property, and possibly still lower the monthly payments. you can then play landlord for the positive cash flow, and use the cash as seed money for other ventures.
Bottomline, There are many possible avenues open to you. look into as many as possible, and after you have some numbers, decide which route best fits your long term objectives.
Good luck,
Jeff
Hey,
You don't mention your financial situation, so I have no idea if this house is a strain on you each month, and that changes the answer, BUT....
The only time you would call one of us ("We Buy Houses" people) is when you need out of the house NOW. You would end up leaving all of your equity on the table. For this house, presuming no repairs are needed, the best you could get would be 80% of FMV and that just covers your mortgage and getting 80% might be tough.
As someone else pointed out L/P is the best option, if you don't mind being a landlord.