Posted by Ed Copp on February 09, 2003 at 15:36:33:
that you have not done this before, now that said.
The first deal is a bit confusing in the way your numbers are stated. You say you have comps, and then you state a different number for Realtors. You can not have it both ways either you have comps for one number or the other or you do not. The property is worth whatever it is worth. My best guess is that you may have comps @$86,400 that would be the possible worth of the property. To be prudent the Realtors commission should be figured as part of the comps that you have, not added on. It just does not work that way. If you are sharp enough to buy and sell this property, or any property you deserve the commission for yourself, so if you earn it keep it.
So with a full retail of $86,400 against a possible purchase of about $84K you have no deal at all. Just figure in one or two payments for holding time, and some costs for closing and you will readily see that your deal is a negative.
The 1031 exchange is a whole other subject, and unless you know what you are doing you stand a chance of being unsuccessful here. The fact that you are not talking to the actual owner does not help either. I have found that it is most often a complete waste of time to talk with anyone who cannot sign the deed and get the deal done. What usually happens is they will pump you for all of your info and then shop the deal in the marketplace, often taking the first deal that they can find that is better than yours.
On the second deal, once again you are not talking to the owner so you risk being left out in the cold here. The rent price will not service the debt for the asking price even at todays low interest rates. Her situation sounds much like the ex-husband (and she) are the sellers. If you give them any info they will use it against you.
For a lease option end use it would be a good idea to have a tenant lined up in advance.
One good thing is that cemetaries usually provide quiet neighbors.