Updates on the L/o Lead I got

Updates on the L/o Lead I got

I had posted this before but for some reason it was deleted. Ask me how? well Idk. I should ask dg.com so here it is again folks..I'm posting it again..

I contacted a seller (61 year old lady) who was interested in doing a l/o. she owns a vacation property 6,000 sq ft Lot size 1.47 acres in Miami 8 bedrooms and 4 bedrooms fully furnished . The property looks out-updated on the outside in terms of it needs new painting and a good landscape. Then a guest house I bed/1 bath which Her brother has been living there for more than 4 years or so.

we have been emailing each other back and forth (building rapport). So she wanted me to call her to we can chat. SO I called her yesterday. I was trying to find her motivation hot button.
Seller told me her dad built the house back since 50 years ago
-Seller leaves out of state
-Seller has a care taker who comes often to do cleaning.
-nobody in her family wanted the house
-She does have the money to do the minor updating like paint and landscaping.

The seller asked me what I was going to use do with the property and I told her that I'm an investor and I wouldnt be living in the property and I will be putting in tenants in there. As soon as I told her that was it.. she was ok with that and she asked me about my company like do I have a partner or something like that and I said yes I do. I was like I got a contractor/handyman who I work with who will be doing the maintenance, landscaping etc. She then was like I dont want tenants who smokes lol and I was like "the tenants who I am going to be putting in your property are going to be well qualified and screened and you are aways welcome inspect your property anytime you wish but you will have to come through me to coordinate it."

She rents out the rooms in the main house (there are currently 4 vacancies in the main house)
Seller rents out each of 3 rooms- $800 per month
each of the remaining 5 rooms- $600 per month
The average utilities fee she paids for the main house(cable, internet, and electricity):- $400 per month
The guest house $1100 per month (the tenant pay for their own utilities)

Seller was asking $4500 monthly and the the purchase price $695,000
the houses surrounding this property has lot of maximum lot size of 6,000 sq ft. (This subject is the biggest in that subdivision)
So I asked the seller "how would you like it if take care all the maintenance, repairs, utilities and you don't have to worry about none of that and I pay you $3,500 for 120 months". She was you mean "10 years" and I said yeah and she like no problem.

lol so I remembered the 4 plex with no money down which RoyVoeks did and was posted on DG.com and I was like I might as well ask her if she can do more years because of they way she said yeah so quickly without any hesitation in my first offer.
Here is the funny thing I ask her "instead of 10 years I know you are going to live up to 100 years old, how would you like it for 30 years instead of 10 years she like "you can have the property for the number of years you want it doesn't matter to me. I just want the rent money to take care of my family. I was really surprise and happy:)

Seller is ok with be leaving the furnitures and the mowers for cutting the grass for me.
Seller wants to see me first in person before the contract starts. She will be coming back to miami between dec 26th - dec 31st

I told my partner about this deal and he like we should look for a tenant buyer. I told him no this is not a tenant buyer type deal.

My plan is to hold on to this property and refinance it. Then I will now build a retirement home on the lot. This deal has so many potential which I can do with it.

The appreciation rate in that area is 2% each year and I found another property less than 1 mile 6 bed/4 bath sitting on 1.86 acres and zillow estimate was $744,486.

What do you guys think about the 30 year term offer which I'm about to offer to the seller tonight with $3,500 monthly payment and $1000 credited monthly towards the purchase price of 695,000 she is asking for? . She never told me anything about a down payment so I guess Its no money out of my pocket. I plan on posting ghost ads and real ads to screening new tenants which I would be putting in the remaining vacancy rooms.

Assume this property is fully occupied it could produce $5400 (from the main house)and $1100 (from guest house) maintenance ($400 for utilities for the main house and $200 for cutting the grass if I use the same person who cuts her grass. The monthly income will be $5,900

Thanks in advance

here are the photos attached below

__________________

TC
Miami Florida

"If you are not doing something that help the universe or God or your family, or YOU, is that something you should still be doing?"-Dean Graziosi

"Each day do one thing to get you closer to your dreams because if you do today what others are not willing to do, then tomorrow you can do those things that others are only dreaming about doing!"- Joe Jurek

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Sorry guys I had to repost

Sorry guys I had to repost this for some reason when I was about to respond back to kareng and val comments and click submit, the entire post got deleted..
Just wanna give you folks some updates in regards to that.From what I could remember I'm taking the advice of kareng and Val. I'm not going to rush. I gotta make sure I do my DUE DILIGENCE before I make an offer.
I email the seller sand here i what I wrote to her "Good Morning, I'm still interested but my partner and I are trying to make sure that I can make it work. I will get back with you in a couple of days. Thanks." THe seller told me that she will pay for the taxes and insurance. Her taxes $547 monthly

Here are the list of my due diligence which I plan on doing
1) I will ask the seller if the brother is onsite manager like kareng said or does she accumulate his rent on his property management fee.
2) I will check if the tenants are long/short term
3) The vacancies I will check if it is norm
4) Check the repairs (she told me that there are no repairs needed. The tenants are happy with the way things are) the only repairs she told me about is for the fence. (I will have to take a look at it to see what she is saying)
5) Verify and ask the seller for copies of the past utilities, gas, water, sewage bills to make sure its up to date.
6) Ask for copies of the lease agreement for each tenant to verify

Kareng had asked me if there are repairs who pays for it? Well I told the seller I will pay for the repairs and maintenance when I spoke with her. The reason why the room rents are $800 an some are $600 is because of the size. For instance room 1 is 11x11, room 2 is 15x11 (according to the pis she sent to me) the rest of the rooms are way much bigger and some again are smaller.

Please let me know if I'm missing any other thing I should do on my due diligence list. Thanks Kareng and Val and to the other person who had comment on my other post thank you too

__________________

TC
Miami Florida

"If you are not doing something that help the universe or God or your family, or YOU, is that something you should still be doing?"-Dean Graziosi

"Each day do one thing to get you closer to your dreams because if you do today what others are not willing to do, then tomorrow you can do those things that others are only dreaming about doing!"- Joe Jurek

Follow me on my road to being a BILLIONAIRE http://bit.ly/1q7aOFX
Go LIKE my official facebook page http://on.fb.me/1qQGO6i


more diligence I gotta do and more updates

Another due diligence which I will do is to make sure if she becomes ill, will the family try to take it back from me during the terms (even though I'm the trust of deed)
- Even though she said she will be paying the taxes and insurance, what if she becomes ill, who will be paying it

I checked on the public record and she hasn't paid her back taxes for this year $6,569.00. I gotta make she pays it before I take over. Also I had seen VAB Pending and Block from Deed due to VAB ..I also do my due diligence on that too.. If I'm going to be doing the repairs with maintenance I think the $4500 she is asking is too much.

__________________

TC
Miami Florida

"If you are not doing something that help the universe or God or your family, or YOU, is that something you should still be doing?"-Dean Graziosi

"Each day do one thing to get you closer to your dreams because if you do today what others are not willing to do, then tomorrow you can do those things that others are only dreaming about doing!"- Joe Jurek

Follow me on my road to being a BILLIONAIRE http://bit.ly/1q7aOFX
Go LIKE my official facebook page http://on.fb.me/1qQGO6i


Another due diligence which I'm going to do

I gotta ask the seller why is she selling

__________________

TC
Miami Florida

"If you are not doing something that help the universe or God or your family, or YOU, is that something you should still be doing?"-Dean Graziosi

"Each day do one thing to get you closer to your dreams because if you do today what others are not willing to do, then tomorrow you can do those things that others are only dreaming about doing!"- Joe Jurek

Follow me on my road to being a BILLIONAIRE http://bit.ly/1q7aOFX
Go LIKE my official facebook page http://on.fb.me/1qQGO6i