Do You See Any Way To Help This Person???
Got a call last night. Have not seen the house yet. Did not look like a deal, but wanted to get some thoughts from more experienced investors to see if there is any way to make a deal out of this?
This guy lost his job, is on disability and one month in the rears with his mortgage payments. 2002 taxes are current and it does not appear to have any leins that I could find.
Here are the numbers:
Built in 1925 - Sq.ft. 1174 - 3/1 - 5 room ranch. Tax value is $46K. Comps avg out at $66.00 p/sq.ft.
Has a 1st loan for $33K & 2nd for $12K.
1st is $377.00 & 2nd is $234.00 p/mo.
Total $611.00 p/mo.
It needs a roof and some floor structure repair.
I would not expect the area to support any great rent increase beyond the fixed $611.00.
Being a newbie, I did not see a deal, but newbie I wanted to see what someone else might do with it.
Thanks
Housebyr
If the place is worth 60k.....
explore a new mortgage for the $45k he owes....
off the top of my head.....
45k @ 5.5% for 300months is
about $275/month..
even @ 9% for 300 months is roughly $400/month
that leaves some cash flow if it brings in 600
Will
Thanks for the input. I think I will take a trip tonight and check out the house and the neighborhood.
I think that I am finally starting to catch on here with these posts. All things being equal, if you can rent it out at a good price, the loan just becomes a tool to accomplish the objective. Help someone out and make some money doing it.
Thanks again
Housebyr
Looks like good ROI.
Mike
Well $45K for a $60K house generally sounds great.
However, you mentioned Structural Floor damage/repair, and a new roof.
What will that run you?
I'd really like to find out where you will get an investment loan at 5.5% even with 20% down....
Clint[ Edited by cmiller2 on Date 08/20/2003 ]