Found Seller through Tax Deed Auction posts. He owes back taxes of $9,900. He bought the property Subject 2 and says he did not know taxes were in arrears. Having trouble getting money. There is no mortgage. It is on 2 lots. He said he has paid 80K and put another 30K in repairs. The property has 2 assignments of rent on original date of recording in 1993. He has put more bootleg rentals on the property including a subdivision of the main house. Mortgage was $160,000. This property is practically a demo and is uninsurable. Tax assessed value is $97,549. My homework says it needs at least 40K in repairs. Neighborhood SFH comps are an average of 100K to 120K. He thinks 100K cash is an acceptable offer. Now what? Oh, I forgot this part. There is $1,600 cash flow. No leases. I offered seller 40K all cash in 10 days and watched the blood drain from his face.
ARV.
What about these 2 rentals he has added? What to do about not being able to find true Comps? Should I even be giving this another thought? I do think about it though. He was really motivated. He has no cash to put into it. The back taxes are another problem for him.