Okay…Thanks for the info/schooling…I got the chance to look at this property…I asked her what effect it would have,she says it isn’t a problem until I decide to make an offer.
This home is not an REO…Investors got it for $172 in 2007.
It has been re-listed 11 times ,rented out twice for a period of a month each…rent was too high.,but it sits empty today.
Agent ran this history bit …says they spent $30K-$40K.
She then tells me,there are so many investors tied up with property they cant move.
Investor rehabbed the 1921 house ,estate sold home and it looks great…the landscape could use some work.
They started with $224,900 listed on 2/13/09.
Droped to $214,811 listed on 3/24/09.
I want to offer based on MOA formula.(This would mean investor will loose money they used to rehab).Then again agent could be saying that to discourage me from low balling.
Here are my numbers.
70 % x ( 8/sq ft x 1686 sq ft) + (199K) = $ 212488.00
70% x $ 212488 = $ 148,741.6
Thats $ 23,258.4 less what they paid for.
They tried to lease it out forr $1400/month ,in an area with average rentals of $1000.
No takers .
Is this worth the hassle?