One of the bites Ive gotten on CL ad is this lady who doesnt want to go through the rental process again and just wants out from under the property. She was selling it on land contract when after 5 months he couldnt pay rent anymore, and moved. I will attach our emails so far:
Her - Hi, I saw your add. I have a property I have to get rid of and do not want to do a land contract or owner financing. It is assessed at $43,900 and I understand that means nothing. Location is **** German street still a decent neighborhood. My asking price right now is $39,900 but I am willing to negotiate. Four bedrooms, small yard, new carpeting, fresh paint I had a tenant in there briefly but he could no longer pay the rent. It is now vacant and I do not want to go through the rental process again. Please call me at 814-882-****. I am in Erie, Pa.
Me - Does it need any work? You understand I am an investor right? I cant pay full market price for a property. I see you dont want to do a contract for deed or any owner financing, but those would be the only way Id probably be interested in paying retail value. If youd be interested in a long term lease and would give me the option to buy it, I think we could work out a deal where you got something close to what you are asking for it though. You wouldnt have to be responsible for any of the repairs and anything else related to being a landlord. All of that would be taken care. If this is something youd be interested in please get back in touch with me. Thanks
Her - I had a rent to own with my last tenant but he backed out. There are a few minor things that need to be done, the carpet has one spot that needs to be cleaned there is a drawer front in the kitchen that needs to be put back on. The back yard is small but the tenant never bothered to mow the grass so it is over grown right now. I have already put a lot of work into it before this last rental he was only there for 5 months. The outside needs some work he was supposed to take care of it but didn’t. It could use a paint job but it’s not too bad right now. The porch floor needs some boards replaced and painted. All storm windows and screens are there. It was Section 8 last year and had to pass inspection.
What percentage rate are you looking at for the rent to own? I was offering 25% at the end of the lease toward the purchase of the home. I really want to get rid of the property altogether. I would consider any offers.
So after this email back I called her. Asked her what the lowest she could take on an all cash offer and she said 25k, and she just put 5k into before the last renter.
Ok, starting to lick my chops a little because I already did some prelim comps and come up around 50k. After talking to her some more she starts asking me about terms for doing a land contract etc, I thought wait, you said you werent doing any owner financing anymore, but alas, it looks like she would. Her situation is that she is renting another building, that also has her store front, so she cant move into this other property, and she was using the rent from it to pay her rent where she is. I explained just a little about doing a LO but didnt get into much, she sounded interested, but im not really that into the idea myself, would really just like to try and flip this one if possible. I figured just a few thousand, if that in repairs so was going to make an offer somewhere around 22k. Its a free and clear house. Ill know more tomorrow when I go see it. Any comments or suggestions are more than welcome.