This Could Be My 1st Deal...Need Help
I would like to get some input on the following scenario: Asking price 56,900 for single family 1bed 1 bath house with
600 sq ft. Could use about 5G in repairs( I will furnish all labor)Tenant pays 500/mo. and willing to pay 600 when fixed. Tax 60/mo. Questions: How much to offer? How much to put down? AMV 100/sf in area. Thanks in advance.
I have several questions.
What do you think the property is worth now and what will it be worth when you fix it up?
Does the tenant pay for all utilities?
What type of financing are you considering?
Who does the yard maintenance?
What are comparable houses that size selling for in that area?
These are questions that I would like to know the answers to before I would make a final decision on whether it was a good deal or not, but just by the numbers that you have given already, I definitely would not pay anything close to the asking price. Look forward to getting the rest of the info!!!!!!!!!
It is probably worth 45000 as is. Tenant pays all utilities except h2o. i would have to take care of yard work. Houses in area go for 75000 and up depending on size but roughly $100 per sq ft. I probably would hold it for a year or two before selling so I dont know what it would be worth when I sell it. It is a very small house. Supposedly the tenant is OK. 2 yrs and no problems. JEFF- why would you offer 4-10k above list.?? I thought you are to buy lower to make a profit? No?I dont know. That Is why I picked a small one to be my first- less risk.
hey dude,
well i would say it all really depends on your comps... if you say that the comps in the area are going for 75k, hell yeah you got yourself a deal... of course they have to be comps, not only that, but a 1br/1bth home for 75k??? yes i kno that its what the houses in the area are going for but i mean, i would probably look for a more "cookie cutter" deal, 3br/1bth home to sell a bit faster, thats what i would advise you to do, but none the less... if the comps in the area reflect closely to your deal, then seems like a good deal. for me tho, thats kinda iffy, only cuz i dont know the area tho, so its your judgement as far as how the area is.
keep us posted
[addsig]
i'm not sure what the owner is willing to do, but this doesn't sound very sweet to me. it seems they're asking for too much for what they have. i also feel funny about the 100/sf figure. so if you have a 1200sf 1 br, it'd go for 120k? this sounds a bit wild.
going off of your numbers strictly, i'd make a maxiumum cash offer of 34,830 - 70% of asking price minus repairs, assuming it'd be easy to justify at that price, then try to set up hard money to cover it or assign it to a cash buyer for a few grand.
the looser they are on thier financing options, the closer to thier price i'd come. ie., if they're open to carry the full asking price with nothing down and sign over the deed paying the next 2 months of notes while i find a tenant/buyer, i'd offer them 45k or so (basically what you said it's actually worth in your opinion right now).
try to make them sell YOU the house.
Quote:
On 2004-02-09 22:45, durabond5 wrote:
I would like to get some input on the following scenario: Asking price 56,900 for single family 1bed 1 bath house with
600 sq ft. Could use about 5G in repairs( I will furnish all labor)Tenant pays 500/mo. and willing to pay 600 when fixed. Tax 60/mo. Questions: How much to offer? How much to put down? AMV 100/sf in area. Thanks in advance.