One Title...Two Homes...???
I've currently got two homes under contract at 65K a piece with each needing major rehab at around 30K a piece.
My initial intention was to flip these properties. However, with only one title the homes have to be sold together.
The way I see it I have three options:
1. Buy properties, rehab, and try to sell both properties to one seller
2. Buy properties and try to get individual titles for each home and sell seperately
3. Buy and rent properties at FMV of $800 a month
What do you folks think? i hesitate about option 3 only because hardmoney loans are too high in interest and I feel like I would have a great deal of my investment capital in these properties.
Your input would be greatly appreciated.
Thanks in advance for your help.
Can you buy them as one deal. Then go for option 2, but if it doesnt work out revert to option 1and still come out okay?
RZ:
First thing we need to know is how much
is the "two on a lot" worth? What year were they built, how many bedrooms, what type of area is it in, etc...
Best RIches,
Jeffrey Adam
[addsig]
Get a title company to check local records and see if the title can be split into individual titles.
Make the deal work with option 1 or 3.
Option 2 is high risk unless there is clear evidence that you can get the property split. The zoning will be a good indication.
If you can not really make option 3 work because you lack the credit consider taking on a partner or just flipping the deal to someone else who wants a project and can obtain the credit.
If you want a partner send me a PM.
BTW - Unless the property is worth a great deal more than the 65K plus repairs this deal sounds like a cash hog. Are they really bad enough that 30K is needed to fix them? What if you tore them down and started over, what would the numbers look like. 30K in repairs for a 65K property makes me wonder...
John