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Am i missing something, or should it be this simple?

Posted on: Tue, 07/24/2012 - 02:29
Am i missing something, or should it be this simple?

Hello DG Family

I am in Sunny San Diego California, have come across 2 homes in the Houston Ga area. (pronounced How-stun) go figure LOL) addressed next to each other and have the same owner. Both have tenants who have not paid rent in over a year, and the original owner (residing in Florida) says, "I don't care what you do to the properties"

Property 1- SFH -2/1.5 -1368sqft-Lot sz 9583-ARV=48K
Property 2- SFH -2/1.5 -1056sgft-Lot sz 9583-ARV=39K

The owner has 5665.54 Tax lien/debt since 2009 -2011

I was thinking to contact the owner, make an offer to pay off his tax debt, in exchange for the property deeds. BOTH Properties

-Subject to pay after sale of both properties within 30 days
-Get a loan against the properties 26k to pay the owner leaving approx 61K to put 10Kx2 into but properties 6k to the owner

Leaves 61K both properties
Market for sale both propeties as is or after repair value
-I prefer after repair value
-Sale for (Both) 45k

Should clear 20-22k

Looking for advice and opnion

Thanks, Nate

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The only thing achieved without effort is: "NOTHING"


Posted on: Tue, 07/24/2012 - 03:12 #1
The thing to check is.....

You need to check and see if the props are paid off or if there are still mortgages on them. If they have mortgages, you would still need to pay them off. This could wipe out your profits. If it went to tax sale, the mortgages would be wiped out. That's #1

Are there any other liens like IRS liens? This could put a big damper on the project.

Since a landlord can start eviction after 90 days (I believe) of non payment, why hasn't he in the year? This sends up a red flag to me. Maybe he knows that the props are too far underwater and he is better off losing them than keeping them. Just a thought. Maybe the area turned into a shooting gallery? Is this something you are ready to deal with if it did? Just more thoughts.
These are just some of the things you should be looking in to.

Can it be this easy, Yes, Sometimes, No, Not always. Just make sure you protect your Ass...etts Eye-wink

Keep us posted...

Andy Sager
DG's AndyS
CFIC member

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Andy Sager
DG's AndyS
CFIC & IE member
2013, 2014, 2015 & 2016 EDGE Alumni Laughing out loud