Would You Guys Take It Or Pass?
Went and met with a seller on Sunday.
They owe 84K...
FMV 82K...
Since it is upside down, is it possible for a sub-2 to work?
I let the seller give me the house for 0K.
I resell it for 85K ( 3K above FMV because of owner finc.)
The new buyer's payment .... $925/mo, 2k down pmt.
Here's how I would break it down...
Mtg 650
HOA 120
Taxes 75
Pack 80
No real benefit to location of the condo(it's 5 miles from the nearest suburb). It's a cozy 2bed / 2/0 bath. Only about 1000 sq ft. 2yr old condo. Nice closet space and living area.
Would you guys take it or pass? Apts like this condo are renting for $700-$800/mo. What's your gut tell you? I need to meet with the sellers soon. Should I tell them they don't fit into my program?
Thanks
Sam
I don't know much about subject too, but how about not selling it right away, and letting the appreciation go up. Maybe after you take over the house you could L/O it to a t/b on a 2 year option? Cool thing about L/O is that the payments are usually higher because they are buying it in two years. You can also give them a monthly credit so they don’t feel like they are over paying.
My gut tells me that you won;t get 935 a month for it when rents are going from 7-800.
I'd run this by someone that knew a little something about short sales, and get some advice on if this could qualify for a short, and if so, how to pull this off.
I would agree with an earlier comment that it would probably be difficult to get the higher rent.
For $3000 it probably isn't worth the risk either. I believe that you could visit the neighbor next door who is selling their home, and easily negotiate a similar a price. Where is the deal?
I would keep looking for a deal with at least $10K in it. They are really all around us.
This is a condo, right? I wouldn't do it. There's not enough wiggle room in there. Condos don't appreciate as fast as single family homes. You could actually lose money over time. And don't let those HOA fees go up...
Thanks guys. I realize that when you are working on getting your first deal it is a little difficult to be un-emotional. That's why I came here; to hear what I thought I already knew in my head. If that makes any sence.
Thanks again,
Sam
samedwin,
Remember, you're the one with the carrot. You are the expert, the guy with the solutions to their problems. You never need to buy a house, They need you to buy it! I spoke with someone tonight that is practically begging me to buy her house, and thanking me for beiing there when she called. (I think she's motivated), I'd like to help her out, but I have to see the house, to see if it qualifies.
Stick with it, you'll know when you've found the right one.
Good luck,
Jeff
This deal has a very skinny profit margin. The only way I see it working is a possible L/O. You may want to send a PM to John $Cash$ Locke he specializes in L/O's.
Michael, since when does $Cash$ speciallize in L/o's?
Tom[ Edited by tbelknap on Date 01/29/2004 ]