Well, the meeting was a 2.5 hour dialogue. It was quite strange and rewarding, although I hadn’t gotten any of the properties under contract. My guess is that the woman is semi-motivated. The one property I checked out today needs between $50K-$60K worth of repairs. The lower end comps I received from my agent are between $10K and $40K. Now, the 1st floor of the property, which was once a store, is pretty much gutted. The 2nd floor is a 2 bed/1 bath apartment. Someone had begun remodeling the place to make it a 2 family unit, hence turning the store part into a residential unit, about a year ago. Unfortunately, the place was left in shambles because the guy who was remodeling passed away. The owner says she needs at least $25K so that she can catch up on bills associated with the other 3 properties and her husband’s passing. She told me that the taxes are current on this property I’m discussing. Her other properties include a store and two very huge homes. After her husband died last spring, she said that she’s been struggling with finances. There are no mortgages on any of her properties, and she terminated insurance and turned the water off for the property I was interested in.
I know this is a long post. I just wanna include all the details that may be of importance.
Any advice on what my next step should be, or should I market this property, the one that the owner wants $25K for, to see if I can get a buyer to take it off my hands for $30K?
Please let me know if I should move on to the next or try to make this work.
I think in your case, it’s all going to boil down to the ARV of at least one of the homes. If the low end comps range from $10 to $40, that’s NOT a good range. I would try more or less the middle to higher comps. You wanna know how much it will be worth after all the $50k repairs are done. There also needs to be enough meet on the bone for the end buyer after your fee.
So, if it would be worth $120k+, or $110k, I think you may have a deal. :smile