Think I Found A Property
Hi I just have a question because I am a new investor and I have yet to have made any offers on any properties , but I spoke with a guy who has a 2 bedroom 1 bath house that he is trying to sell he said that ARV will be 85k I have not done an appraisal yet I only drove by to look at it. He is asking 54k from what I can tell it need some work. like carpeting new windows I am not quite sure of all the work I have not been inside yet. The house is in a not that great area but not that bad either. I guess my question is does it matter the area or is it about the profit? I appreciate any help thank you(trying to get over that first deal hump!!!!! :-? Can anyone tell me what I shoul do next the seller seems to be very motivated help[ Edited by powerinvestments2004 on Date 05/25/2004 ]
In general, the best answer when it comes to real estate is...location, location, location! With location you have a gem when your work is done...if the area you speak of has several comps (houses that have sold in the last 6 months that are comparable in size and amenities), this would give you your best answer...pride of ownership in even an older area would also help with your decision...If however, there are several homes in the area that need help, you may not have a "good" deal or you might sit on it for 6-12 months even after the work is done...on what basis does the owner cite the 85K value? I would talk to some local Realtors and get the whole picture...spending $300 on an appraisal may only be a last (expensive) resort. Good Luck! craiggans
Don't buy anything that you would not live in. Don't buy in an area that you would not raise a family in.
I am in Lakeland, Fl and have done a bunch of stuff in Tampa Bay. A 2/1 is typically difficult to sell. It would be good as a rental. In an area in that price range in St. Pete I would not think it is the best of area. Nothing wrong with being a slum lord if the cash flow is ok and you keep the house nice. I generally take 10k off for closing costs on front and back (in this price range). Better safe than sorry. That brings the price to 64k. Windows and carpeting lets say 10k. Add another 5k for the inside being generous since you have not seen it yet...
Why is the seller so motivated? What does he need to get out of this? What did he pay for it? (public records will tell you this)
If he paid 50k then he is stuck at that price. If he paid 20k then he can go way down. What are the comps in the neighborhood?
There are a lot of questions I am asking but I believe they will help you decide what to do. I think I know what I would do, but that is me.
I believe there is a good tool on this site to determine if it is a good rental property. I am not sure where it exactly is, but I have used it and like it.
Hope I have been able to help a bit.