Posted by Marty Greenberg on May 15, 2002 at 11:26:32:
The subject line says it all.
SCARED Newbie’s 1st deal: FLIP or LEASE/OPTION? - Posted by r0xw0rld
Posted by r0xw0rld on May 14, 2002 at 21:21:31:
Hi all!
A little background:
Poor credit, very little cash, and I plan on moving out of state in one year.
I got a call today from a woman in town who is “sick and tired” of being a landlord for her 3br/1bth home.
She wants to sell it for $130K (but she sounds flexible on this) or she’s willing to lease/option it to me for $1200 p/month (also sounds flexible).
It’s on a busy highway, but has nice curb appeal. It’s also in a very desirable school district for families.
This opportunity came MUCH sooner than I was expecting, but I’m summoning my courage to step forward. I think I
could flip it (not that I have any real idea how to do that!) for $140K at retail. I could also do one of those ‘sandwich leases’ I’ve seen you guys talk about. I already have two tenant/buyers on the line willing to pay $1500 p/month for the place.
This is my first possible deal and I don’t want to do anything fancy or do something way over my head
What should I do? Flip or Lease/Option? Suggestions, criticisms, insults??
Thanks in advance, r0xw0rld
Re: SCARED Newbie’s 1st deal - Posted by Matt
Posted by Matt on May 14, 2002 at 21:54:47:
If you’re moving out of state you might not want to stay in the middle of this transaction.
Does the house need any remodeling or updating? you may try to offer her 110k cash and flip it, see how flexible she really is.
Another question, how did you find this lead? ad in the paper?
– Matt
Re: SCARED Newbie’s 1st deal - Posted by r0xw0rld
Posted by r0xw0rld on May 14, 2002 at 22:41:44:
Matt,
Hi. No the house is pretty much ready to go. It’ll need a clean up job after the current tenant leaves at the end of the month.
The lead came to me by a misplaced newspaper ad. I was looking to buy a home for myself and placed one of those ‘young family looking for home in this area’ ads. I told the paper to put it in the REAL ESTATE WANTED section. The lady messed up and put it in the WANTED TO RENT section. So all week I’ve been getting calls from people wanting to rent their homes in this hot area AND I’ve been getting calls from people who think I have a place to rent. Kind of weird how things happen sometimes…
Thanks for the advice,
r0xw0rld