First Potential Deal from Direct Mail Campaign
Hey BPers! I sent out postcards last week for absentee owners in Denver who were late on their property taxes and I received a call from one guy today who has what seems to be an interesting property, so figured I'd throw it out there and see what you all think.
The owner bought the property in August for $99K and he's put about $40K into it (new roof, new deck, new heater, etc.). It's a 2bd/1ba 750 sq. ft. single-family home on W. Iliff Ave. in SW Denver. It's a tiny house, but it sits on a big lot (.4 acre) so I'm thinking it would be a good buy/hold property for someone looking to rent it out or for potential land development if the parcel of land were subdivided. I looked at what comps I could find, but I don't currently have access to the MLS so these numbers might not be totally accurate ($1000-$1200 for rental or $120K-$150K for sale). Factoring in the lot size and potential land development though, I think he's expecting a higher price....and the fact he's already put $140K into the house. The owner is still finishing up the repairs he started and is planning on selling early next year. He was originally going to move into it, but his plans have changed and he said his money is tied up in another property.
That's all I have for now, but he was very personable and easy to talk to...just wondering if it's worth pursuing? Thoughts? Advice? I'd be interested in passing it off as a potential wholesale deal or partnering somehow with another investor to learn the ropes since this would be my first deal.
Thanks!