What Would You Do With This Property???
I generally stick to commercial deals, but this one just landed in my lap
3/2 home. Built 1970
Home is very liveable, but is dated and has not been maintained (weeds, paint, etc.)
Motivated and flexible seller - wants out ASAP
Principal: 84K (VA loan)
Behind on payments: $4500
Seller wants: $5000 (can be a defered settlement, monthly payment, etc)
Repairs (to update property): $10,000
Total Cost: $103,500
Value (After Updated) $115K (conservative estimate)
Market Rents: $850
Monthly payment: $810 (includes Taxes and Insurance)
In your opinions......
Is this a good deal to do Sub. to?
Birddog? (...I am pretty busy these days)
Rehab (Margins are slim...but it would be profitable)
Rent?
I guess my question out there to everyone that does a lot of homes is, if it were you then, How would you approach this deal?
Thanks for your thoughts.[ Edited by hibby76 on Date 07/28/2004 ]
I don't have a answer for you but I am very interested in your situation because I have the exact same deal in my lap. The numbers are almost identical. I also am not sure what route to take. I am thinking of doing a short sale. I'll take pictures of the property showing it to be in bad shape send them in the short sale packet recieved from the lender and offer 65-75% the value of the property. They will most likely give me no more than 21 days buy cash. I will either sell lease/op or to another investor for profit. How does that sound to all you experienced investors?
Do you think the owners would be willing to go to SS?
If you want to bird-dog it I might be interested...I sent you a PM.
When you say SS are you refering to a short sale. How do I go about that. Thanks for any advice.
11.5k profit would be to slim for me for a rehabb. unless you were going to buy and hold as in renting but there again your area may not offer as much of a profit margin as mine.......kenmax
kenmax is right, considering holding costs, closing costs etc. it will net much less if anything. This one is too thin to do the rehab yourself, and there's no money in it as a rental either. This might be ok as you said as a handyman special though.
good luck,
Jeff
In my opinion this is not a good deal. Any sub 2 that you have to take more than $100 out of your own pocket is not worth doing. Unless you are really needing a property
I agree, the profit margin is too slim for a sub-to. Either try a short sale or it could make a decent rental perhaps.