Posted by Nathan(oh) on November 14, 2001 at 18:01:55:
It is worth about what they owe which is 60k. The market value rent is about 525/month. I know the area and it is a big rental area. Both sides have a yard and 3br/1ba which is typical for the area. The owner wouldn’t do a new contract, would leave that up to me. I was trying to consider keeping as rental, or just assigning it to another property seeker and didn’t know if anyone had lo’d a double before.
what would you do with this deal??? - Posted by Nathan(oh)
Posted by Nathan(oh) on November 14, 2001 at 12:43:13:
Got a call from a seller that owns a double. They bought it a year ago for about 60k which is a little below the fmv. It has both sides filled with tenants that pay on time, however one may need a new lease drawn up. They pay below market rent at $495 and $465 and the monthly payment w/t and I is about $700. They are soon to be 2 payments behind and want me to take them over and bring current. Might be able to get the deed, but didn’t go into detail about it yet. I have an appt. Fri morning at the place with them and am not sure what would be the best strategy here. Also, the house is in pretty good shape. Any advice would be excellent as always. Thanks,
Nathan
Re: what would you do with this deal??? - Posted by dewCO
Posted by dewCO on November 14, 2001 at 17:45:13:
What do they owe and what is it worth? If you can’t get sufficient equity with it, it may not be worth it. If you really know that the rents are below market and it can cash flow, then maybe, it’s up to what you need and want in a deal. Dont’ count on the fact that they ALWAYS pay on time. It may be a story, or it may be true, but only because the rent is low–you raise it and they can’t pay, then you’ll need to cover a month or two while you get new tenants, and hopefully you won’t have to evict them. If the one lease is almost up, don’t let the current owner do any more than a month to month, then you get a app from them and decide if you want to keep them (or if they can afford YOUR RENT).
YOU need to know the value AND the correct rents, don’t ever rely on what a seller tells you. It’s always pretty much best to get the deed, if you can afford it, with the mortgage in arrears and if the lender will allow you to keep it if you continue to make the payments. Otherwise you’ll have to flip it quick maybe.