[Susan Nigh]

Susan Nigh

Hello to All,

I an so grateful to be part of this forum.
My question is: What would be a fair price, and created way to offer,
on a 15 yr old 2 story vinyl siding, 1512 sq ft.,3/2 market value $106,with some updates,
and they are asking $144? And there is possible owner financing.

Thank-you, and I hope I gave you enought info
Susan
Greenville,SC

[DON WEDE]

DON WEDE

Susan:

I use a little quick and dirty formula. Take the taxes, insurance, 10% for maintaince and repairs, and 10 % vacancy from the monthly rent. This is then your debt service payment to the seller, their monthy note/mortage payment. This is then “what the house can afford to pay”. Then divide this figure into the $144k that they are asking this is how many payments it will take to pay
off the debt. This is assuming that you are using this as a rental.

I would also make them an all cash offer 60% of market value.

Just a couple of ways I make a quick offer.

Don Wede

[Rafael Vazquez]

Rafael Vazquez

Don,

Just to clarify, you will need to have an idea what the house can rent for to use this formula, right?

thx
Rafael

[DON WEDE]

DON WEDE

Rafael:

That is correct. If the debt service and expenses covers rent I would like the deal.

Don Wede