OfflineI fell in love with a house today. I went to see a FSBO in dinkytown next to the U of MN. It is a duplex that has been a single family home lived in by the same family for the last 40 years. The man who owned recently passed away, and the family want to sell to put the money and not the house into the estate. The house needs a MAJOR rehab, (man became a recluse and didn't keep things up) But I can see it's potential and it's majesty and it's story. (See I told you I fell in love). They are putting in a new heating system and maybe plumbing. It has a new roof. But the inside needs everything ripped out including some walls and redone. The main level has two bedrooms and could have a 3rd. and the upstairs has 6. I don't know what it would cost for electrical update and fixup. This is definitely a location,location,location thing and I know it will pay in the long run. They are asking 250k but are willing to do owner finance. I either need some great advice or a good dose of reality. Please advise!!!
Cathy
Cathy B
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If they want to "put the money and not the house into the estate" why are they "willing to do owner finance"?
Question #2 - What are the comps (comparable values) in the area.
Question #3 - Sounds like a lot of money for a major rehab. What else can $250K buy?
There are a lot of foreclosures out there right now that are going cheap. You may want to really look around before rushing into this one.
There is fighting amongst the eight kids, I'm not sure why they dont sell it outright. Since it is literally 4-5 blocks from the University, it's prime real estate for rentals. Houses of similiar size and bedrooms have recently sold for 363, 560 and 270. Couldn't say the condition. It is alot of money for a major rehab, but since they are willing to finance, you just have the deposit and holding costs. Rehab may not get done by winter, so may not be rentable till spring, so that would be expensive. You could do half and try and rent then work on other half. so could cash flow or at least pay for itself while working on other half. You are right it is expensive but 5years from now when the market has turned could make a real tidy profit.
Cathy
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...