Good Deal Or Not

I need a little help on this deal,

I'm not sure if i should assign this or pick up the property myself using a hard money lender. The seller is giving up the property for what she owes which is $55,000. The mortgage payment is about $600 and its currently rented out at $675. Now the comps in the area are about 70,000. What should i do???

Comments(10)

  • kenmax27th September, 2004

    you have to consider repairs to bring it up to par. you didn't say. also holding cost { monthly payment, ins. taxes, lender expenses.} . if i can't make at least 10k after repairs and holding cost i don't take it on. actually i don't consider it unless i can make 20k but hey thats me. but the general rule seems to be 10k......km

  • dakaveli27th September, 2004

    It looks like no repairs are needed and I'm not quite sure what the taxes are but I will find out. Would that give you a better idea if its worth it or not?

  • patrecejames27th September, 2004

    why not get financing and buy it on your own. With new financing your mthly pymts would be a lot less than $600. and. A hard money loan could cut into your profits, find a good mortgage broker. another csenario is to put the property under contract with a small earnest deposit and assign it.
    [addsig]

  • ray_higdon27th September, 2004

    The big question is "What are you doing with teh property" Do you plan on holding long-term or flipping it? If you plan on holding long-term I would not buy a place for $55k that gets $675 rent, just my opinion though

  • patrecejames27th September, 2004

    "ray" what would be your desired rental income on a property bought for 55k.
    [addsig]

  • dakaveli27th September, 2004

    Yes Ray,

    What would you charge for rent, the seller said about $750!!!

  • kenmax27th September, 2004

    if the seller is motivated to sell maybe they would be approachable for "sub2" fin. or a lease/option. if sub2 is in the game you can aquire the prop. without bank fin. and if they have paid a mortage for years it can be like aquiring a loan interest free {if they have paid for several years} if no repairs are needed it looks like a good deal, when weighting cost vs. profit. sub2 or l/o will keep you out of banks and hard money. this in turn greatly increases you profit margin...........km

  • ray_higdon27th September, 2004

    For something that is 55k, I would want the rent to be at least $700 min. That's with no rehab needed.

  • kenmax28th September, 2004

    what you charge and what you canget for rent is two different things. have you checked to see what the area rents on a similar prop. are......km

  • himam28th September, 2004

    *Board Hustler*[ Edited by JohnLocke on Date 09/28/2004 ]

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