hI, am looking at a sfh to purchase as a rental property it is in good shape 2 bdr 1 bath. 0wners are asking 49.5k. They purchased in 93. They had it treated in nov. 05for termites and I spoke with guy that treated. He verified that he treated and there was minimal damage. He has a 5 yr guarentee on his treatment and it will transfer with sale of home. Home will rent for $550-600\mo. I was thinking of making an offer on it but am a little leary with the termite problem. Also, this would be my first time purchasing a sfh for rental. My goal is to hold it long term, and would like to work with owners for financing. Any experienced buyers out there that could give me suggestions on tailoring an offer. I don’t expect you to do it for me but an idea about interest rates that you might request with the offer. I know some people try to do no $ down but I am not sure if I want to go that route or not.
Have it inspected, that will tell you how bad the damage was and if they are still there.
That’s it! A structural engineer should inspect it. Not just a home inspector. Houses can survive termites.
Pay the money and get the peace of mind.
Do you even know if the sellers will finance?
No, I don’t know if sellers will finance. I know they dont have a mortgage on it. I am just checking the termite thing out first. I didn’t want that to scare me off. Thanks for the advice in using a structural engineer. Any one have an idea of what they mighht charge?
A structural engineer did my mother’s inspection on a two family for 350.00. There was an extra charge if she wanted some official report for a lender. I did not get the specific details. My friend paid 300.00 or a single family.
Thank you!
Whats all these questions about termites lately?Its too early for swarm season.
Campbell,
Just ran across a sfh that had been treated in Nov. and hadn’t had any experience with it. Have you gone into the HUD site yet? There was a link to an auction website called bid4assets.com and it has a lot of companies-not sure how reputable that auction off land Texas Florida area. Have you ever heard of it? Any experience with it? It looks like some cheap properties if you live in the areas they serve.
graciez,
Yes I have been watching that site for about a year now.Have not bought anything yet but You have to do your due dilligence.THere was a company in Niagarra Falls and I went to check out their property and they were ligit. I just couldnt figure out how to manage it .These areas have little appreciation and little cashflow ($200/month) I cant see the use of collecting $200/month minus $50 for prop management unless you can buy like 50 of these things at once .My eternal ? has always been how do you buy these things one at a time or 2-3 a year and make it worth it.One flight for an emergency and your whole cashflow is gone for the year 
Campbellgroup,
I thought I would watch it for something in my state. I don’t think I would buy something too far away and have someone else manage it. I guess I like the hands on of managing it myself. My thought is to start out with a cashflow no matter what it is, just so it isn’t negative. I am trying to work on figuring out how to get some cash flowing so I have it available for use. I don’t want to partner up with someone just for their cash. Banks are hard to work with. Even our own personal bank who we have banked with for years was leary of loaning us $ for rehabbing or investing. I wish I was a good negotiator to make good deals but I am going to have to work on that one.