I’m pretty new—I have done two assignments so far–I have a few in my pipeline and I have some questions. The people on this board are very knowledgeable…
I have a property that I looked at this past weekend. It’s a rental that they owner got about 12 years ago in an exchange for some other property so its owned outright with no mortgage.
He has some bad tenents in the house now–they had the place filthy–even though he has a for sale sign out front and they know he is showing the house.
The comps for the house are around 155. He intially asked for 150 but after we looked at the house and I wrote down all the repairs needed he was willing to come down substaintially.
I want to do the deal as an assignment but I’m not sure what to offer him.
Most of the repairs are cosmetic–it needs a new kitchen floor-paint needs some wood replaced on the outside–the tenents have knocked out some of the sheet rock and needs to be replaced (not too much) but the big problem is the ceiling–in one of the upstairs bedrooms there was a leak they started to repair it up I guess they are waiting until they can see if the leak was fixed and another leak downstairs in the kitchen. The owner says that he doesn’t know if the leaks are from plumbing or from the hvac system. The roof is new and there is a 1/2 pipe coming from the roof to the front of the house, the owner says they rigged that up to stop some leaking from the hvac/duct work. I’m figuring it needs a new hvac system-- So my quetion is----I haven’t done any rehabs–and I don’t know how to price in those large repairs. One person told me to take off 20% of the price plus 5k for repairs and my assignment fee–but that doesn’t seem like a good enough deal for a rehabber—I’m calculating an offer of 110k
Does that sound right to you all?–not too many properties are coming up for sale in this neighborhood and the few that did sold quickly.
I’m in the Dallas area.
My second question is about fha loans. One of my investors told me that people getting an fha loan cannot buy a property from some one that has owned it for less than 3 months. Do they have similar restrictions on assisngments? I know you cannot do an assignment on a hud home but what about VA?
Thank in advance—