OfflineThis is an REO and the details are listed below. What would be the best approach to this. I have some ideas but I will appreciate any help. The property is located well, close to all ammenties but it looks rundown.
1) AP - $294,400K
2) Type- SFH
3) BDR -4, BTH - 2
4) LA - 1,874
5) LS - 7,405
6) YB - 1935
7) ZESTIMATE - 448,000K
TAX ASS.425,170K - 2007. (Are they going to eliminate this?)
This are my approaches:
1) Inspect with Building Inspector to make sure the structure is good.
2) Make an offer, say like 200k and file local county court.
3)Obtain finance and request a delay in payments for at least 3 months.
4) Make renovation 4-6 months and sell.
Okay, thats all I can think of, help! help! help!.
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What is the property comps? Have your realtor run comps for the area. I'm finding that zillow is not as accurate with all the REO's selling on the market. Also, how long are properties sitting on the market? In my area, properties are on the market for 180 days plus. Your strategy is to sell, and unless your area is different, most markets are calling for a buy and hold strategy. Can you buy and hold your property? Will it cashflow if you rent it out? How much are the repairs? Also, your tax assessment should be used to give you an idea of what the property was purchased at NOT as a calculation to determine value of the property. You can look at the tax assessment a couple of ways...
1. The property was assessed at $400K plus, so you know that the property has the "potential" to eventually rebound to that price again.
2. If you were dealing with a private seller, the tax roll is a good indication of how long they've owned the property, what the seller has paid for it, etc. This is a good way to make sure your seller is being up front with you.
3. Finally, the tax roll lets you know if the seller owes back taxes, where you can send mailings to, etc.
Hope this helps...
KimmyJ
No matter what you are doing here....make sure if you HAVE to....you can rent it a Price that PAYS the mortgage. Until you have enough cash reserves to do so...taking on a Large mortgage is riskier than a small affordable one. I have passed on some Excellent Deals, only because of the market Cycle. Now is buy and HOLD time....There aren't many buyers out there right now. If you try to flip it in 6 months, we don't know where the market will be....If we were on a market rise "already" I would think differently, but NO one wants to be stuck with a Big mortgage, and being upside down in an investment. Really think about this....
Can you rent it? even if you don't plan on it.
Can you afford it? if it's empty.... Be creative, and make sure that you believe it can be done.
Then make your move.
my opinion
Sam
BUILD your knowledge base....it is your ARSENAL to wage war against disbelief and the negativity of the status quo. You need your weapons......It's your choice whether you carry them or not.
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Don't let EXCUSES be the nails that keep you INSIDE the box.
Vili, the first thing you need to know is what you plan to do with the property. If you want to renovate and flip it, i have to agree with Northwest that this is not a good time to flip. The way the market is today is very tough and i don't want you to get stuck with a mortgage payment for months or maybe even a year if the proprty is not sold. If you were to purchase the property, you sould live in it, if not rent it, but make sure the payments covers the mortage, insurance and property tax. PM me if you have any further questions.. your island brother...
Lloyd
Vili, Is your financing in place yet. You need to have this in place before you jump into the game. Just a thought to confuse you more...Jan
Hey! I thank you all for your much needed contribution. I have like some down payment. I am trying to workout the comps and all. Drove around the neighbourhood again to see if its really worth pursuing this one. I think it will be a good buy but I am thinking of the hussle and tussle of getting contractors and all to do the job. Write now when I get all the details from the agent I will try and make an offer as low as possible like go down to $150k. This would be great if they accept it and I will go for it. If not I may pass.
Vinaka
VV
Be aware of the "fell in love with the first one" trap. Sometimes, we get so anxious wanting to get into the business, we buy the first one we study, because we get too attached.
I really got attached to the first one I studied. I was really bummed when it didn't work out. Now, I am glad it didn't. It wasn't that great of a deal compared to others. It WAS a good learning experience, though.
Know your limits and know when you WILL pass (your limits). Read some of cbrpower's posts. He lets a LOT pass- there are always more deals!
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
I agree with you friend. I think my emotion is carrying me forward here and not the return this property can bring. I will actually inspecting the house tomorrow 02/26/09 and I will make my decision. I am preparing a couple of Q's for the agent which will determine whether its okay to pursue this property.
Thanks.
VV
A little more confusion for you about a contractor. I have been down this road a few times. When looking at a deal and trust me a contractor can either help you make money or shrink your profit margin. It is very important to find a reputable rehaber, contractor type person.
If you are in a REI club, ask the other members about who they use. Just a little more confusion to help melt your brain!!!!!! GOOD LUCK......Jan