Hello everyone and thanks for takin the time to read and possibly help me.
Here is what is in front of me:
I have the chance to purchase a 3 bd 1 bath condo, where the puchase price right now would be 240K.
this investor has capital tied up in another property so he needs to get rid of this one…the deal is: i would receive up front 22K and one year’s mortgage of 1700/month ($20,400) so a total of $42400.
now, my question is…what else should i be looking for? i saw the prop and it’s okay, liveable and has new applicances, bath has been done over and is ready to live in.
I am working on gettin the comps for the area to see exactly what the market is doing in the negiborhood and the market rents as well. i know for a fact that rents are around $1500/month (boston, mass) for this type of living space.
my concerns are of course, what if we cannot find a buyer or a renter after a year?
What exactly do I do here??? any help in this matter is appreciated and i thank you. hopefully this will work and i will be on my way! :biggrin
What is the property actually worth? Cash back does no good if you are so overleveraged that you can not sell and get out of the property in the near future. Instead of getting the cash, negotiate the lowest possible price and assign the contract (wholesale it) to someone who can pay cash and get a positive monthly income from the rents. That’s just what I would do anyway
hello, and thanks for your input. to answer your question, this property is appraised at $270k and the comps are about the same. i am awaiting the inspection also. this is actually a condo conversion, was a 3 fam and the other two units have already been sold.
guess you would want to crunch the numbers
not sure 1500 a month would cover the Mortgage if so barely
comps of the other 2 condos would be right on if they were sold in last 3-6 months
to minimize yoru risk or lost try to get it under contract take it to local REIA
see if you get any bites or run it by reasl estate agent to get an idea
It’s nice that you are getting that cash back, as far as the cash and 12 months mortgage payment, but you don’t have alot of equity there. As others said, find out what the other 2 sold for, and then put yours up for the same price or less, sell it and get out of it.
Also, is he leaving the financing in place or owner financing it to you? You want to clarify these details to make sure it is really a good deal. Take your time with this, because it makes me wonder if it is that good of a deal and needs no work, why wouldn’t he just sell it himself rather than give you the $42k to buy it?
