hi Guys, thanks for taking the time to read this. I'm about to graduate from college in May and I want to get into some good investments. I found one deal and I think it might be a good investment.
5 houses - 2 2be/1ba, 3 1/be/1ba that could be converted to 2 bedrooms
Owes - 30k, with 1,500 in backed taxes
asking 32k with 1,500 downpayment, payments at 657/month with 0% interest
Basically he’s desperate and we’d be keeping his head above water. Two of my friends and I were thinking about living in one of the houses and fixing the others up and then moving out when we get all of them fixed and rented.
Average rents for area - $250-$300/month, $425/month for section eight on 2bedrooms
estimated repairs - $10,000
ARV - maybe $15,000 each
Sorry I know this is kind of long. I really appreciate any feedback though. Thank you
After reading more into subject to deals and land leases, it looks like I have a lot to learn before i get into this deal. But I’m up for the challenge!
It sounds like a good deal but there are some questions. Are any of them rented now? Is the 10k repair for all of them or each? Is he behind in payments? I would need this info and more before I could really advise anything.
Good luck,
donrock
0% interest always sounds good, but check hard into the value. Once you secure them in writing, you can get a Brokers price opinion, or what I would do is to pay an appraiser a few hundred to do a “drive by” appraisal of the places.
Landlording isn’t fun. However if you can sell them on a lease option, you can reduce some of the headaches.
If the sellers is truly in a pinch, try to get him to deed them to you “subject to” the existing mortgage. It sounds like you are already onto this, but it will be a much better way to go as your name stays off the mortgages, so all yo uhave at risk is the money you put into the deal.