Seller Needs To Sell 2 Properties...HELP!
Hey folks,
Would someone be willing to advise me on how to structure this deal?
Seller is being transferred to another state by his company within the next few weeks and needs to sell 2 rental properties. He seems to be motivated and wants to get this done in his words, "as soon as possible" so he can get on with his budding career. Here are the numbers:
House #1 (3br/1ba)
ARV $85,000
OWES $71,900
ASKING $75,000
REPAIRS $1,500
MONTHLY $505 PITI 6.0% ARM (non-owner occupied loan)
Property #1 is currently rented at $550/month until August 2004. Market rents are $650-700.
House #2 (3br/1 full bath/2 half-baths)
ARV $90,000
OWES $62,000
ASKING $77,000 (says he won't budge on this price)
REPAIRS $ 500
MONTHLY $ 483 PITI 6.0% ARM (non-owner occupied loan)
Property #2 is currently rented at $550/month until August 2004. Market rents are $600.
Our town is a major college town with lots of investors looking for rental properties. I do not want to be a landlord, however, so my exit strategy on both of these is to tie them up and then sell them a.s.a.p.
Your ideas would be greatly appreciated
Sincerely,
JohnM
John,
There's not really enough room for 2 investors to make a profit on these deals. Best suggestion would be to simply birddog it out to another investor and get $500-$1000 for finding the deal.
You could try to get the seller to sign an option to purchase and assign your position if you find an investor, but I doubt that you'll get more than $500-$1000 either way.
Roger
If I got over my Landlord phobia, would there be a better way to do these deals, maybe on a lease option?
JohnM
Where is this located?
city / state?
Bloomington, Indiana.
JohnMP,
RUN...Don'tWalk....
...away from those REI!
I DON'T SEE ANY POSITIVE CASH FLOWs
....as always,
GoodInvesting, Rocky
No value no cash flow RUN like da MAN says......better learn more about this stuff before you get in here those are no deals at all!!!
As John says maybe you can get a $1000 finders fee but really who wants college headache rentals.
I did 25 yrs ago when I was young a stupid I will NEVER touch college rentals!!!!
Hey then though maybe YOU ARE A college BRAT eh!!!!!!!
SKI
dont get stuck with somthing you will regret latter
yeah, I agree both are no-goes at these prices. I suspect #1 is a no- go at any price above the debt. But keep in touch with the guy, my guess is that soon after moving to the new state the price will come way down. Especially as soon as something needs to get fixed from long way off.