Posted by GL - ON on June 17, 2003 at 18:39:31:
Looks way overpriced to me. At that price if both sides rent for $400 per month, you will be in the red.
I estimate the break even price to be around $60,000. Would suggest you should buy well under that price for it to make sense.
Need help structuring a duplex deal:) - Posted by John and Marcy Moneypenny
Posted by John and Marcy Moneypenny on June 17, 2003 at 18:23:38:
Hey gang,
Here’s the scoop on a possible deal on a duplex:
Talked with owner over the phone. He wants to sell his duplex which he had been living in but has recently moved out. He says that he “has gotten behind on his payments and just wants to be done with the property.”
He had it appraised 6 months ago at $91,400. Bought it in 1998 for $87,000 (not much appreciation there). His mortgage is an ARM that is currently 4.5% with a monthly payment of $450. There is a tenant in one-half of the duplex paying $400 per month. Sellers mortgage balance is $72,000.
Asked him what he wanted to get for his equity and he said he would take $14,000 - $15,000. He is open to both a lease opton and owner financing. Repairs are minor (paint and patch carpet) according to the seller. He would like to be done with it within the next 2 months. Doesn’t want to list with a realtor because of the 7% commission.
Any ideas on what to offer? Multiple offers?
Thanks so much,
John and Marcy Moneypenny, Investors
Realty Solutions Group, LLC
http://www.RSGwebuyhouses.com
Re: Need help structuring a duplex deal:) - Posted by David TN
Posted by David TN on June 17, 2003 at 22:12:48:
The only way I would be willing to take this deal would be for the pay off balance of 72,000. Actually I think that is too much. The only money I would pay down would be the back payments, and frankly, I would have a difficult time with that. If you give this guy 14,000 or 15,000, he will be a very camper, and it won’t be very long before you’ll wish you had never seen this duplex.
Re: Need help structuring a duplex deal:) - Posted by B.L.Renfrow
Posted by B.L.Renfrow on June 17, 2003 at 20:41:54:
Unless this seller is willing to simply give you the property in exchange for taking over his payments and solving his problem, I don’t see a deal here. While it’s possible to buy at FMV and still make money, this doesn’t sound like a deal where that would be realistic. Sure, he wants $14-15k. And if he keeps dreaming like that, he won’t get a thing when it goes to foreclosure.
I might offer him a couple thousand for “walking money” if I had to, if he was willing to deed me the property subject to the existing loan. If not, wish him luck and tell him to call when he changes his mind.
Since he is already behind in his payments, if you can show him how it’s in his best interest to get rid of the property and move on, you have the makings of a decent deal.
Brian (NY)