BiggerPockets

This property belong to my neighbor's mother. SFH 3/2, located in Kissimmee, Florida (Golf Community). This property was advertised by the son as a Short Sale 165k for 135k. No takers as of yet. I took a look at the property and it has some good features. Nice neigbhor, low yearly HOA, Pond view, Open floor plan, 2-car gar, central air, about 2100sq. All carpets needs to be replace due to a dog the last occupants had. Need paints, minor landscaping, and a very good cleaning. My estimate is 5k in repairs. The son offerred it to me at 118k. Apparently, his mother is in preforeclosure. She purchased the property in 2004, 167k. Add a screen in porch another 7k or so. The bottom line is 118k. My estimates is that she owes about 67k. I took the son I was interested, but 118k was entirely too much money. The ARV on the property is about 130k. I don't have an end buyer, and would probably have to financed it through an FHA or Conventional mortage. I thinking of putting together a Short Sale offer for 50-55% of the ARV which is about 65-72k. Live in it for a year and then sell it at hopefully 130-140k. Any recommendations or advice. I already own a house two blocks away and have a mortgage. Should I birddog this deal out if I can get it?

My understanding is that you would only consider this transaction a "short sale" if you offered LESS than your neighbors mother owed on the property. If she only owes 67k then you may not have to do a short sale, which may mean you don't need to negotiate with the lender at all.

The thing you really need to be careful with for this to be a deal is the ARV. Make sure you absolutely have a solid ARV. If you are looking at scooping this thing for cheap and selling it after a short period of time for profits, essentially a flip, then you need to make sure you are BUYING at a low enough price. Lots of people are speculating that the market will drop further, and I haven't heard of any that are thinking it's going up any time soon.

The real estate market in your country is shaky shaky business and I would be extremely cautious planning to buy and hold anything new for the next year or so unless it was rentable and could support itself or I was getting it for crazy under market value. If you got it for crazy under market value that would give you a buffer for any drops in the market until you sell it.

Also, could this property be considered recreational property, being that it's on a golf course? Or is it really just residential? Keep in mind that in tough times recreational property is going to drop hardest and fastest and stagnate on the market.

Be careful! If you really can get it for 50% ARV and the ARV is solid, then I might go for it. I would definitely plan to flip it for profits sooner rather than later though. (don't wait a year.)

Just my thoughts, good luck sir!

How many months behind on payments is she and with what bank? I sure its about 2 1/2 months.

How much does she actually owe on the property? Her son didn't say, but I presuming at 118k.

Is she expecting to make a profit? No.

What are the comps? ARV is 120-130k

How soon can they move out? Vacant.

Maybe you can get it under contract and wholesale it... or maybe you can bird dog it out as a short sale

Sounds like a good strategy. I would probably want to birddog it my first go around. What price point would you recommend I offer?

Will the owner have any problem proving they can no longer afford the payments?

Carson,

I have asked the seller agent to pull some comps for me within the last 90 days. Do you think he will be truthful? Is there another way for me to find out about sold properties in the area. I am not in Florida right now so I just can't walk into the county court house and search myself. Lastly, and something I don't think i mentioned was that her son told me that if they could not find a buyer that he would talk her into transfering the deed to me. Is this wise?