Is This What I Am Looking For?
I have just found another house and want an expert (ie. anyone who knows more than me) opinion on it.
It is a 4 bedroom on 2 acres.
With a large storage building.
It has only been lived in for 6 months and is in great shape.
Take over payments of $678/month, which includes Taxes and Insurance.
It is a Repo home with $28,000 in equity and a FMV of $107,000.
Any input?? I know I kind of have the "horse in front of the buggy" but I just came across this and don't know what to do with it!
Thanks, <IMG SRC="images/forum/smilies/icon_smile.gif"> [ Edited by dhousley on Date 02/07/2004 ]
Need some more info:
Is it empty? Whose payments are you taking over? If they "owners" are still going to live in the house do you get title? Can you "flip" the property? What is the purchase price?
On the surface it looks pretty good but those questions, and others, remain. If you can get title in your name and are allowed to sell it I'd go for it. If it has 28K of equity in it I'm not sure why someone else isn't taking that out rather than "giving" it to you...
Q
Thanks for the response RunningQ
I have gotten a little more info. on the home.
It may be good, may be bad, I am too new at this to tell.
The home is only 6 mo. old and in great shape.
The title would go into my name and would be refinanced by the bank at 6.25 %.
The loan amt = $78,400
FMV = $107,000
I would retain the $28,000 equity.
It is a 3/2, 1600 sq. ft.
I think this may be the kicker...it is a manufactured home....in a neighborhood of about 25 other manufactured homes.
Does that info. help a little more to assess the situation?
If your numbers are correct, you have equity there. That's good.
Now we have to look at what you intend to do with the house.
Are you going to live there?
Is it going to be a rental property? If so, what are the rents for similar houses in the area?
Could you sell it on a Lease/Option?
Do you intend to flip it?
These are a few of the issues that you will have to address in determining whether this is a good investment for you.
Sounds like you're on to something though.
Hope it works out.
[addsig]
I would opt for a quick flip on a mfg home. The land may help keep up the value but mfg. homes decrease in value rather than increase like homes do. OUr local dealer told me that the national average was-6% per year. I have had homes that sold for 70 K offered to me for less than 20 4 years later. Everything depends on knowing your market. My brother makes good money doing these but doesn't hold them for more than a couple of years.
Do some due diligence and if the numbers work out, go for it!
[addsig]