Is This Worth Exploring?? - Posted by Tim

Posted by ken in sc on January 11, 2002 at 07:11:03:

  1. If you don’t know how much property rents for - how can you think about buying this as a rental? How can you run numbers on cash flow?

  2. Beware of cat smell - it can sometimes cost more t fix than you think!

  3. If you buy for 78K and put 10K in it, by the time you pay interest during the fix up and your closing costs, you don’t have any equity. A lot of work for nothing! You should always wind up with at least 15% (and usually more) equity when you are done.

Get all the facts and then run your numbers and make the offer that works for you - she will either take it or not.

Good luck -Ken

Is This Worth Exploring?? - Posted by Tim

Posted by Tim on January 10, 2002 at 14:21:18:

There is a 2 bedroom Ranch home for sale in a very good neighborhood in my city. The lady selling is motivated to sell, house is probably worth $95k-100k. needs a little upgrading inside, Kitchen, bath, paint, carpet, probably looking at $8-10k. Thinking of keeping as a rental , if I can get this for $78k is it a worthwhile investment opportunity. There are other homes in the area that are rentals. I don’t know what the going rate is though.
Should I upgrade inside or just paint and carpet and leave kithcen and baths the same for rental purposes. It doesn’t look that bad inside someone could definitely buy this home at fair market value and live there, however the home is cluttered with STUFF and cats and smell! that I think is turning off potential buyers. She is asking $97900! doesn’t sound too motivated to me but that is what the listing agent told me. She does have alot of equity in the home however. I plan on making either an all cash offer or perhaps it is better to get financing. The all cash offer is coming from my line of credit, which I then plan on cashing myself out with a 1st mortgage, or should I just make an offer subject to financing conventional with a downpayment? Help any suggestions?