1st shot at a deal on a house in a “War Zone” with the owner behind on payments to the bank. The broker I am working with says the house in valued at $94k and she thinks the bank will take $70k. The house is being rented by a person getting a Section 8 check for $1100 a month. How should I handle this? I must move quickly.
Here are my brokers comments regarding this deal.
I decided to send the previous listing to you. This has all of the information that you may need for this property. Again, I have already spoken with the bank and what I got from them is that they may consider an offer of about $75,000, (Current Value $94,000). This means that you should offer them $65,000 so that you get what you want for a purchase price. Should we work or way back up to $75,000 we can attach a “Best and Final”.
This property is not yet relisted but will have to be listed by Monday evening. I understand that your meeting will not be until Tuesday evening. I will do the best that I can to work with you on this if you are interested.
Again, I do not like the area, but, this home is currently rented with a FEMA or Sec 8 voucher of $1,100 per month. Take a look and call me when you can, as soon as you can.
You’ll need to find out what market rent is, not section 8, which is subject to change at the whim of the govt. You also need to determine the amount of income you want to net each month from any deal.
If it’s truly in a warzone, you’ll want to get in as lightly as possible and minimize your risks by doing all of your homework on costs