Possible First Deal (Newbie) NEEDS HELP!!!

Bird Dogs, Wholesaling
1

Hey Guys,
I think I might have stumbled upon my first deal. Although I was looking at wholesaling, I came across a property that has been totally rehabbed. It’s a quaint 2 bedroom 1 bath, in an average working class neighborhood. The owner of the house, is open to a lease to own option. The current tenant is paying $800, but will soon be relocating to GA. Apartment rentals go for roughly $1100-$1200 here in S. Florida, so here is my thought process. I’d like to get into this deal with no money down or having my credit involved. Find a tenant to pay $1000-$1100, still have a positive cash flow, and eventually sell the house out right… I know there are several ways that this can be set up, I just need some direction, not to mention I have several questions: 1) how can I find out a more appropriate estimate for the house, before paying to have an appraisal done…(a little insight regarding due dilligence, please) I looked it up on zillow, but not certain if this is accurate enough. 2) What is the best way to submit an offer, but not be offensive, by trying to low-ball the home owner. 3) How do you structure the deal, so its no money out of my pocket, but allows me to sell or reassign, later like in a year, because I really don’t want to be a landlord

I don’t know if I’m all over the place with this one, but like I said I was interested in wholesaling, when this came to my attention, and I’ve heard that owning a property in any form to get started is better than having nothing at all…PLEASE SOMEONE HELP!!!

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Before I give my 0.02, I just want to tell you what my experience is. 2 bed, 1 bath will be a bit of a difficult sell when compared to 4 bed, 2 bath. But I still say give it a shot so that you can get the experience you need. That said, in order to see if you can make money on any deal is to ask the seller questions, listen and shut up. Since you want to do this with no money, no credit, a few questions you may consider asking them. Since you’ve determined a compariable my rent for 1100-1200, find out what the current seller’s monthly payments equal. Lets say they equal 1000, that’ll give you up to 200/mnth in positive cashflow. Also ask how much is owing on their mortgage to ensure there is room to make money on the equity spread you negotiate. Regarding your questions about finding comps…get accurate comps from a realtor and not from Zillow or others. Secondly, regarding submitting an offer, get a good book on negotiating, learn it, memorize it, then put offers out there. You’ll get frustrated if you try following advice ppl put out there. As how to make it no money outta pocket, that is all in how your paperwork is structured. Mine allows for assignment, no money down etc, so ask around someone local who is actually doing these deals and get it from them. Or, see your local attorney in the area.

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Thanks for the words of encouragement Chuck, and of course for the advise!!!