suggestions for first deal in progress? - Posted by Laura
Posted by Laura on July 24, 2001 at 14:59:52:
Hi all, I wanted to run this deal through the board here, to hear suggestions on the options available and how to proceed. I apologize if I leave out pertinent information…but here it is.
A mortgage broker/friend of mine hooked me up with a loan on a large one bedroom house with an unfinished basement (possible second bedroom). My closing costs totaled $386. The house appraised at 158K, I bought it for 135K. Comparable sales values support the appraisal. The mortgage is $990/month. The area is downtown in a “pricey” area, in fact last year the properties doubled. Estimated repairs and advertising total about $600. The house is advertised for sale in a few of the local papers, plus I have street signs that have received attention and phone calls. I understand a few of my options, but would like opinions or experience from others about what might be the best option. I could sell it outright for market value; I could offer a lease option (ask enough of an option fee to cover my expenses put into the house), or I could rent it and let it increase in value. I know it’s a good idea to have a plan for a property as soon as it is bought, but just thought I’d read some input on various options in case plan A doesn’t work.
Thanks for the help. It’s a bit scary, but also a relief to have started action!