Should I Buy This Place?
i have an old guy who wants to sell me his house. witch is set up as two units. if i buy at his price witch he doesnt seam to be lowering, it would break even with no extra cash from rent. is there any benifit to buying a place like this?
this is not my first re transaction but, but it will be the first creative transaction. so, on a non cash flowing property would i want to attemt to buy an option to puchase and try to market this for whatever i can get? any sugestions?
the current owner wants to sell, he seams set on getting his price. i think i could get an option for 6 months. based on some time frames we had discussed. his price is 280,000. and our market is slowing like most others. i have no experiance in marketing or selling rental units, what i have seen listed localy here in bucks county pa are units priced 35% over the price witch a property would break even. these are a sitting on the market and not selling. but it looks to me that every one of the dozens for sale are 35% above a break even figure. can i expect to sell @ 15-25% above or would i be waiting a long time for a bad invester like the people at 35%. one other option i have is to buy and re structure this house to a single and sell it that way, its just more work and ? profit.
If you are going to sell as a duplex, you need to get comps on similar duplexes and talk to realtors about time on market. If you convert to a single, you may have a larger market since you may catch the interest of people looking for a place to live. Again, you should be talking to RE sales people. If you do an option, be sure to have a renewal clause (with some additional consideration) so you can go beyond six months if you wish.
i appreciate the advice