H/o Called wants me to buy. Mortgage is behind five weeks but not in foreclosure, will the bank play ball or will they wait. Home is 100% ltv and needs $10k in work
The bank will generally wait until the ho is 90 days late. Remeber you will need to build a real good case for the bank to take a ss.
steve
This is not a short sale opportunity. Its a sub-2 deal if in fact its a deal.
Nate-WI
true, we really dont have enought info yet to draw a qualified deduction from the data.
how much does he owe 1st mortgage?
2nd mortgage?
etc
steve
owes $68k
$1900 in back payments
$10k in fix up
property only worth $65k after fix up
I would run not walk. Where is the deal here? There is no equity here at all. Sorry but you need to move onto other properties,
Nate-WI
I thought if you short the bank you make the deal.
If I offer $38k would’nt that be a sweet deal
Couple things…if there is only a first mortgage on the property then the lender might not come down much at all. If there was a second lien involved then you might have a deal. Like I said…there is no short sale here. Plus lets add up your numbers that you have presented and not presented.
38K purchase price
1.3K for closing costs
10K in repairs (always higher but we will use your 10K)
1.9K in back payments.
All this equals 51.2K Figure in your principal, interest, taxes, and insurance and maybe your at 550.00 per month (just a guess) Take that over the usual 3-6 months holding costs and your in the 2.2K range at 4 months. Figure in utilities of about, heck I don’t know, 80 bucks a month times 4 months and that’s another 320 bucks. Oh don’t forget about marketing as well. Figure either a 6% realtors commission or even if you try and sell yourself your gonna have to put ads in the paper to market your rehab.
So without any realtor’s commission or the extent of what its going to cost you for marketing you are at 53.7K. Its worth 65K according to you. So that makes 11,280.00 as your profit BUT…this doesn’t include your marketing. 6% realtor fee on that is 3.9K which would give you 7,380.00 as a profit. Still a deal? And this is if your numbers are dead nuts on, you don’t run over your costs (you always do ;), and you get rid of it pretty quick. Whew! I’m off my soap box,
Nate-WI
Agree with gordo on this one… where are you at that you have such a low resale value of a home in good shape? On the other token, gordo, income varies in different places as well. If that $65k house is like a $100k house here, then $7500 there would be about $13-$14k here, which would be a decent deal.
If this is bottom of the barrel of the quality of homes you have around there, stay away, if this is common or the average price of home it may be a deal, but start lower than $38k
Chase
Homes are moving very sloooow in Florida so I am keeping most of what I buy as rentals for now.
this house is a small 3/2
cost to fix up is 7.5 but I always round up
their are so many foreclosure coming out right now I am trying them all
If you are looking the rental route this may be decent. Purchase for $38k, drop a quick $5k to get it to rentability, or $0 since it’s already habitable and someone is living there and rent it out for some quick cash flow.
still needs tile and cabnets paint and carpet
I dont like rental but what can you do in this kind of market
Why tile? Whats wrong with vinyl and whats wrong with the current cabinets? I guess since I have gotten into the rental market more and more the past year or two i have really seen the conditions people have been willing, or grateful even, to accept as renters. I guess it’s all about your upbringing.
vinyl gets burn holes cabinets are way past painting and its small so cost should stay down
Good call. Well then I guess the decision lies on you if you think it’s a deal for your situation or not.
RDR thanks for the feed back. This forum is new to me and so for its been fun learning new ways to do deals and brain storming with everybody
Thanks
jason
Just be careful you don’t get addicted. It’s easy with these things. Free education, can’t beat that 