I have a wholesale deal in small town called Miami, AZ. The owner owns the home free and clear and is willing to let it go for a very reasonable price. However, the pool of buyers is obviously going to be very small. This would be a great rental property for any investor that wanted to purchase it. What’s the best way to advertise properties like these?
Hi,
I am familiar with the Superior, Miami, Globe area's east of Phoenix, the problem I see is financing and an exit strategy!
Have you thought about either a straight Flip (Or Fix and Flip) or asking the current owner for private financing? (10 year or 15 year financing)
Is the mill smelter and mine at Miami still operating? Last statistics I saw indicated a slight decrease of population in Miami, something like 1900 down to 1740?
This is certainly small town investing!
Good luck,
GR
Gold river has some points about the physical housing concerns, but perhaps i can help with the advertising for renters part. I have never been to Miami, AZ, nor have I actually stepped foot inside of Arizona. However, as someone who has had experience in real estate in a small town, I have some advice. Since your looking for renters, look to attract people who commute to the big cities (phoenix, tempe). If that’s perhaps a stretch (I don’t know the distances there) look to perhaps advertise to people looking for a quiet escape, and perhaps play off of the natural beauty of the area, perhaps retirees. Just, above all, look to accentuate the best qualities of the area, even if other surrounding areas are better. Enable Comparative advantage. Eventually, some fish has to bite. GL with everything
I’m not sure about the mine in Miami, but they’ve just opened up a mine in Superior which the owner says is bringing renters in the area.
My initial plan was to do owner-financing but she’s willing to take a huge discount for an all cash offer. She owns the property free and clear but she’s cash poor.
The main problem I see is that it needs a new septic system. I don’t think any renters or potential lease-option candidates would want to come in with something like that over their shoulders.
I would suggest this as your first and most urgent goal: Try to put the property under contract (at the best price possible) with a pure option. That should cost you only about $10
After it’s under contract, then you can look at possible exit strategies, such as a sandwich lease option, cooperative assignment, owner financing, flipping it as a straight wholesale deal, etc.
Don’t take a chance of losing this potentially profitable deal by not making yourself a principal in the transaction ASAP.