Posted by Zack on March 07, 2003 at 19:43:58:
If the comps show 175 for a 3/2 then 160 is about FMV for a 2/2. I would definitely add another bedroom. One option to get 1290 is to sell it on a lease purchase and hope you can find a t/b to pay it, if that’s not possible you can hope to get enough option consideration to make up for the negative cash flow. Or you could sell it on a land contract or try to get the bank agree to a short sale.
Motivated Seller to Pay Me! - Posted by Mark-CO
Posted by Mark-CO on March 07, 2003 at 17:20:00:
Hello everyone, I am still out here trying to land my first one. I have a motivated seller that owes 160k on a sfh that has a FMV of 175k. Seller is ok with sub2. Two problems; 1st is that the monthly pmt is higher than market rents by almost $200 (MR=1100 pmt is 1290 including piti); 2nd is that it is a 2bd/2b in a 3bd/2b community. Basement is unfinished with same sf as upstairs (it’s a rancher). Good location, with views and seller is willing to part with $6600 to assist in updating carpet, paint, landscape issues. What is the answer to the market rent problem besides finishing part of basement? I am concerned that in this market it may take a while to find a t/b that can afford this kind of rent. And then cash flow?
Re: Motivated Seller to Pay Me! - Posted by LeonNC
Posted by LeonNC on March 08, 2003 at 11:55:11:
You can find a better deal if you keep looking. You can probably pick up another one just like that today if you want. Would you want a whole portfolio of deals just like this. I wouldn’t even consider this one.
Negative cashflow, 2/2 in a 3/2 community, no equity, should tell you right not to spend anymore time on this one. Keep looking you’ll find a winner.
Leon