Walter 0 Report post Posted November 23, 2004 I came across a seller who purchased half of duplex years back (late70') for 76k. The neighbourhood deteriorated to the point where his property is appraised at ...52k. He has it listed with an agent for 51.5k.I tried him with LP at his mortgage (40k) plus closing fees ($1200) and agents commission (2k). I also tried to add my sweat by building a fence and exchanging windows (3 @ around 1k alltogether) as a downpayment. His agent says he wants 4k and assume his mortgage... but at this moment I wouldn't qualify. By building fence, exchanging windows and sprucing things up I could rto it for 53k as a sandwich. Do you have any other ways to crunch it? Thanks Walter Share this post Link to post Share on other sites
Douglas 0 Report post Posted November 23, 2004 newbie: at the tone of what it sounds like, leave this one and get a better deal...seems like you got a good head about making a deal but this one.... Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted November 23, 2004 Walter,His agent says he wants 4k and assume his mortgage... but at this moment I wouldn't qualify.You wouldn't need to qualify to assume a mortgage. Just come up with the $4K. And what's his balance? This could be a good opportunity for passive income for you albeit the possible troubles of the area. You could simply turn that $4K (Or less if you try to negotiate) into a profit after a couple of years (Or less) depending on the market rent. That is, if the property doesn't kill you. Sounds like it's in a possible war zone.Regards,Adam Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 23, 2004 Walter, I don't see much meat on those bones for you. Not much of a spread for you to work with, and if the area has deteriorated to the point you describe, I can't help but wonder about the hands on management the property will require. There's an old expression in real estate: ugly houses attract ugly tenants. I'm not local, of course, but this sounds like more trouble than it's worth, in my opinion. Share this post Link to post Share on other sites
Walter 0 Report post Posted November 24, 2004 The seller wants to free his credit and that's why he is crying.today his agent called me that an investor comes for a visit to that location with a different agent. That investor bought already 14 units in this area in the last few years...and yes, I will let this go without any regrets but with a good experience as for a newbie. If one doesn't make offers she never buys...next.Thanks Walter Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 24, 2004 I will let this go without any regrets but with a good experience as for a newbie.That's the way to look at it, Walter. The right attitude will go a long way towards your ultimate success. It's the seemingly minor and inconsequential experiences we do along the way that get us the smarts and know how to close that deal a month or three later. Share this post Link to post Share on other sites