Can you guys help me with any creative solutions for this property?
The house is a 3bd 1 bth.
1100sq.ft
its rented at $1000 a month
The mortgage is $1785 per month
loan balance is 300k
interest only loan first at 6% second at 10%
I think some gets put towards principle, but very little.
The owner said if I can do something with it then go for it. So I am trying to figure out if there is something I can do to turn this into a good investment or make some quick cash.
The owner said adding a 2nd bathroom from which they got an estimate at $6000. Would make it appraise for about 360k.
I was thinking doing some updating inside and out and maybe adding that 2nd bth that it can turn into a good deal.
What are your honest opinions on this property or creative ideas.?
What steps would you take to make this property a deal?
The owner has no idea about adding value on a property.
Mortgage is almost double the incoming rent and you haven’t even factored in expenses yet. Little or no equity, little or no chance of pulling off a shortsale sweet enough to make this one work. I’m with Mike on this one…RUN far and fast.
there looks to be little or no equity in this deal (house is worth around 300k +/-10% or so). Add a bathroom isn’t going to change the value much.
I’m assuming your in Calif based upon the deal and your previous post. Appraisials don’t mean jack in this market right now. Where did you get the 360K number? I am very skeptical are going to get a 360k appraisal with comps between 265k and 318k.
this definately falls into my previously mentioned “Buy & Lose Month Every Month” Strategy.
Maybe I should do late-night TV guru commerical to promote this REI technqiue. All I need is a yacht, sports car and some surgercially enhanced women hangin’ on my arm; the latter not being too hard to find in SoCaL
your own property is different if you can afford it go for it! Then you can use it to “mill” the equity out of it to use to invest in some passive income hence, rental properties.
