Posted by Brent_IL on June 17, 2003 at 22:27:34:
If you can get the seller to make three months payments, this might make sense if you look at it sideways and squint a little. You’re taking a substantial risk. 3,000 sq. ft. is a lot of painting and carpeting if labor isn’t extremely cheap. If the rehab drags on, or if you can’t sell for a few months, the $1,700 is a killer. Market price may be closer to $140K than to $169.
I?d take the $6,200 and run, but that’s just me.
Is this a deal? - Posted by Mike Scarchilli AZ
Posted by Mike Scarchilli AZ on June 17, 2003 at 16:57:13:
For all you gurus i just wanted to pass this deal by you.
Its a late 50’s block home Almost 3000 sf w/ a 250 sf guest house that needs total remodel in Chandler AZ. The seller has agreed to let me take title sub 2 to his property because he is getting divorced, making two payments, and wants out or he’ll let the bank take it. I may be able to ge him to make the next 3 months payments while remodeling goes on. His loan balance is @ 124k at 14.9 % ouch! with a $1700 mo pmt its a little steep. I estimate rugs paint, landscaping tweeking the baths and redo of the guest house of $15-17k.
The nearest comps were $136 and $144k in 2000 but the house next door is being offered by an agent for $168,900 for a smaller house. Now this home looks prettier than the one i’m looking at but it has potential with a little paint & care. I know i could lock this up but I never have done sub 2 and a land trust. Could use some advice here. And that Pmt $1700. whoa. I have put this out to the phoenix Real estate club for help from and investor to rehab it and ill assign it for 5% or $6200. All in all the rehabber would have @ $150,000 wrapped up in the deal to maybe make $18-20k at sale. Is this too skinny of a deal all around? Any comments welcome.
TIA Mike S AZ
Re: Is this a deal? - Posted by Kristy-AZ
Posted by Kristy-AZ on June 17, 2003 at 23:55:46:
Mike,
Be very careful with some properties in the Chandler area. Especially anything older with a price tag over $150K.
Now about that payment…You can almost get a HML and make the same kind of payments! Personally, I wouldn’t be going after this one unless you plan on holding it, which in that case I would get a new loan on it and lower those payments.
If you would like, I can run some comps for you and see what the average time on the market is for this house. The numbers sound really skinny to me, as I know it takes awhile to sell in parts of Chandler. One house we had took 6 months, and even at that we had to L/O just to get somebody making the payments besides us! Then again, another house we had in Chandler sold in less than a week, for more than what we were asking.
Let me know if you would like me to research the comps and sales. I’d be happy to help!
Kristy-AZ