OfflineMy husband and I currently rent an upper and lower duplex. The owner would like to sell it to us but we're not sure we could get a loan because our LLC is new and our personal credit is poor.
We know a lot is wrong with this place too. For instance: Roof needs repair, no insulation in attic so our heating bill has been very high the entire time we've lived here (4 years now), the gutters need cleaning and probably replacing because water is digging holes under the foundation now, the floor is crooked upstairs, the floors leak downstairs if the toilet overflows or the washing machine floods, the flooring all needs replacing, paneling in several rooms and not sure what's underneath, porch needs replacing and exterior and interior needs paint. Electrical needs updating too.
Seller says he paid 182,000 for it. We heard he actually inherited it. TotalView says he paid 175,500 for it back in '04 and the zestimate is 203 with value range $198,940 to $276,080. It shows as a single family property type with a tax assessment in 2008 of 152,800.
It has a shared driveway which is actually owned by the city and it is near the end of a street on a cliff with no fencing and very small triangular shaped yard. There is a garage owned by the city at the end of the driveway next to the house which they allow renters to use but it is in need of some repair also.
The renters downstairs just moved out last weekend so now we are the only ones here again. I think we've been through about 4 new renters since we've moved in. The owner is out of the country so he does not keep up on the property at all. We do the lawn and snow removal as needed.
Other homes in the area range $265 to $120.
Does this sound like something we should even consider trying to get a loan for? If so, any suggestions?
I would try a Lease Option or a Subject To. If he owns the property outright, you could also do contract for deed. Tell the owner that for the down payment if he where to do one of those three things, you would fix up the property (paint, new carpet, etc. etc.). I would first run the numbers to make sure that you can get a positive cash flow out of this property. Why are people moving in and out so readily??
Destrie
Destrie
Failure Is Not An Option
I know that the first two or three renters were having a lot of personal issues, family issues and work related issues. The one never paid rent the whole 3 months they lived here.
The neighbors that just moved out said they simply found a better place in a nearby town where they had their own garage and the appliances worked and there were no apparent leaks in the ceiling. So, upkeep of this place was definately a factor for this last renter.