OfflineI found a FSBO on craigslist today, it is a duplex the owner needs the money for the retirement home. The did a contract for deed last year and have recently gotten it back. They have it listed for 125,000 it was appraised when sold last year for 127,000. Comparables are all over the place according to totalviewrealestate.com one down the block sold for 70,000 another the next block over sold for 135,000 and another for 140,000. She said the lower values are houses that need alot of work, this one does not need upgrading. It is currently renting for 750 on the 2bdrm and 800 for the 3bdrm. The renting has been consistant for the last 19 years.
I already asked if they would be willing to do another CD she said possibly but would need a "major" down payment (her words.)
I feel the price is a little high for cash flowing, but she said the last owner defaulting has left them in a "bind" does that sound like a low all cash offer and be done with it to you? Any and all comments appreciated. Oh the taxable value is 177,000. taxes are 2400.
Cathy B
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my question is, with the duplex being rented out. How do you know if it needs any fix-up? Are the area comps. for props in top condition ?
my thoughts are 1. determin FMV 2.offer solution to sellers problem,every seller believes that selling thier property will help solve thier problem.
3.take control of the properety making it a gain for everyone involved. The seller, You , end buyer a true win, win, win
When I mentioned the comp for 70000 just down the street from the property, she said "it is in bad shape you cant compare" I also asked what she thought needed to be done to the property and she said, it is in great shape there is really nothing to be done. I am planning a drive buy today and a drive buy the comps on the next couple of blocks. I think solving her problem is the solution as well. Would a low all cash offer be the solution or a higher owner finance be better? Guess I won't know til I ask.
Cathy B
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Do your due diligence to find out what repairs (if any) are needed on this property you're seeking and whats owe. Just because a comp is in bad shape its still a comp! A comp has to be the same age (yr. built), zoning is the same as subject property, has the same floor plan and is within 0.25- 1.0 mile of the subject property. Its up to you, what you feel is a win-win offer, for both you and seller.
"I will NOT BE BROKE! ANYMORE!"
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