How Should I Approach A Potential Off-Market Deal?
The house right next door to me is a single family rental. It was recently vacated by long-term tenants (9 years). The property owner is a former area native who moved to Florida years back.
I think this could be a potential real estate opportunity for my wife and I to begin our investment career. Given that the property has been managed at a distance, hasn’t needed new tenants in almost a decade, and is in need of some rehab, the owner might be motivated to get rid of it.
The property is in decent condition, though not without it’s rehab needs. I know it has some occasional drainage issues in the back yard and basement. I’m sure it needs cosmetic work inside and definitely on the outside. It is a three bedroom ranch, not sure if 1 or 2 baths, 1 car garage on a dead end street in the most preferred school district in the area.
The property was purchased for $95K in 1996 and I’m guessing would sell in it’s current condition in the low to mid $100s. Rehabbed, it might even go for $160-$170. I think this would be a good buy and hold property that I could rehab and rent in a couple of months time. Rental prices are $1200-$1500 on my street, all are very comparable homes.
My question, is what is a good way to approach the property owner with my interest to buy? I’m concerned that a cold call would put him on the spot and be an automatic closed door. Would a letter be an appropriate way to suggest this? Or Email if I can get his address?