[Gary Bryson]

Gary Bryson

I’ve found a doublewide with 1.25 acres for sale. 3 bedrooms, 2 baths. Asking $85,000. Retail value (fixed up) would be $90K – $95K. Property was inherited.

House needs some work. Needs new carpet, replace shower in one bath, clean thoroughly(was a smoker’s home), roof and heat pump will need to be replaced within 5-6 years.

There is no mortgage on it. Seller will consider taking payments.

I would value your suggestions about what kind of offers to make. I don’t think seller would discount the price heavily for a cash offer. House would rent for $750 – $850 when fixed up.

Thanks in advance.

[Jackie Lange]

Jackie Lange

PASS!

Unless they either discount the price in HALF or
sell with a low low down, like $1000, then low payments amortized over 30 years with no or really low interest. NO BALLOON.

There is no reason to pay retail for a house that needs repairs unless they will sell with really great terms.

if it will rent for $750, your payments cannot be more than $400 including taxes and insurance. You will have repairs, maintenance and vacancies so you have to figure that in to the equation.

Instead of renting it might be better to sell with seller financing so you are not resposible for all the repairs which are needed now and the repairs needed in the near future. Just make sure the buyer has good insurance, you need to escrow that in to their payments.

[Gary Bryson]

Gary Bryson

I was thinking that I would offer full price, with monthly payments, with no interest. I would tell the seller that I need the down payment to make the repairs on the house. The house is in a good location, so I think I could find a buyer, who wants to live there, who would be willing to pay $400 – $450 per month, plus taxes, insurance and maintenance, and be willing to fix the place up.

I don’t want to put any money into this, and I don’t see a lot of profit to be made. But if I could put this deal together, and then assign it to someone who wanted to live there, I could maybe walk away with a little money for just a few hours work. Sort of a cockroach deal. What do you think?

[Jackie Lange]

Jackie Lange

if they will sell with seller financing with no or low down and no interest it will work.
but if they won’t do that pass

there is no equity at their inflated asking price

[Gary Bryson]

Gary Bryson

I understand. Thanks Jackie.