Original message
| STeve
  |  "Found another one. Critique pls."
, Wed 1 Nov 09:59 
found another one in a small city 30,000 pop.
house is apprasied at $93,000
balance on mortgage is $89,000
payments are $640
they would not deed me the property but will go land contract
my concerns are the city. ihaven't done business there but it's growing. it's a average to slow market. this one makes me nervous. suggestions or confidence boosting needed.
or if i should be apprehensive let me know
steve
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Replies:
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| Lynn
Moderator
| "Re(1):Found another one. Critique pls." , Wed 1 Nov 10:29:
Small towns are many times tougher, but hey 30,000 people live there right?
Go for it!
Give yourself plenty of time to close, for example - January 2, 2001 as closing date with an option to close sooner if you need to, and then start marketing the heck out of the property. My guess is that if you follow the advice on this forum regarding how to market properties you will have it sold within two weeks easily.
Worst case scenario- You don't find a buyer within three to four weeks and you inform the sellers that you can't close. If you contract is property drawn up, you will only lose your earnest money (which shouldn't be much). However, I don't think this will happen because I think you will soon see just how easy it is to sell properties when you are offering the right terms!
Happy Investing!
Lynn
[this message was edited by lynn on Wed 1 Nov 10:31] |
| | lynn
Moderator
| "Re(3):Found another one. Critique pls." , Wed 1 Nov 11:47
I don't know your market, but you should at least be able to get $99,900 for it if you are offering it on lease-purchase or owner finance.
We shoot for $150 per month positive cash flow, but the monthly amount you can charge is much more sensitive than the selling price. You should be able to get above market rent, but you need to have an idea of what market rent is in that area.
Here is an example if you use standard amortization to come up with an amount.
Selling Price: $99,900
Down Payment: $5,000
Balance: $94,900
11% interest
payment w/o taxes and insurance $903.75
10% interest $832.82
Just be aware that a payment too high will cost you the deal. Of course, if you have some time built in, you can start higher and lower the payment if you are not selling.
Happy Investing!
Lynn
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