Possible first deal on the line...

I ran across a FSBO home the other day that looked vacant and you could tell by looking at it that it needs some very minor updates…(probably just paint, landscaping).

I don’t have any capital yet as I am still waiting on getting a line of credit. But I’ve been looking around and trying to find to find a deal that I can take subject 2 or anything without cash.

I talked to the owners daughter (owner is in a SR Home). She said that only 30k is owed on the home, so they wouldn’t be able to do anything like a take over payments.

But here’s what she said she could do:

purchase price: $120k (they’ve been asking $145k)
appraised value is: $152k

If I can find a way to pick this house up from that at $120k, I gain a quick $20k (at least) in equity.

With our market slowing down and their mother in a care facility, they are really looking to get rid of the property. But I don’t have the ability to buy it cash right now. And it may be another 60 days before I do.

Anyone have any ideas on how I could lock this house down?

With those numbers, you’re paying retail in a declining market. Not much meat on them bones, in my opinion.
The appraisal, when was it done? And is it a true appraisal, or a Realtor’s opinion of the property value?

I am supposed to be meeting them today to look at the home on the inside and I will ask them to bring the appraisal at that point and as a mortgage broker, I’ll be able to tell if it is legit still.

I guess I’m just looking at as a simple deal…if I can take it at $120k, put nothing into it and put a tenant in on a rent2own at $145k, why would I not do it?

No money to be made here. Maybe at 80K you could start a dialogue but they aren’t that motivated if they want 120K for this house. You’d have to get at least $1200 of rent to even consider and I like to get more, much more. There are plenty of deals to be had in this market. This one, at this price, is not one of them.

I guess I must be overlooking something.

If I can pick up 20k in equity for doing nothing…it’s not a good deal?

Honestly, I’m sure I could probably wait for a month or two and in this market probably they’ll still have it.

So if a house appraises for $150k…and it’s in a slow market, so even say it’s only worth $140k, and it’s a “pretty house” that doesn’t need anything - what’s your max offer? Really 80k?