Possibly purchasing FSBO rental, please comment.
Is there a way to put a link in this so you can see my rental deal investment calculator? It would be so much easier if you could pull it up too.
So here is some information and what I plugged into the investment calculator.
SFH in a small rural town. Approximate value $55k. It would never sell for that in current condition according to pictures and what she has told me. But I would buy and hold anyway.
Owner paid 25k, put 10k into it, owes her partner 14k.
She has moved and lives 3 hrs away (one way). Sick of the drive.
Has stable renter @ $600 mo. & they pay all utilities. I have not been to the property yet, but she said the renters are happy with house AS IS.
Her ins. is $90 a month b/c she doesn't own a home so I think I can get that lower.
Plugging in a "all in" purchase price guess of $40,000,00 the cap rate is 11%.
50% rule is $300. Calculator cash flow $397.75 mo.
Listed on Craigslist at 45k asked her for best price for cash & quick close, she could let it go for 37k. Other investors have offered her 20k and she has rejected.
I think the deal is solid... I would like to go and look at it but I need my ducks in a row before I call her back to make the appt.
Do I talk $$ after seeing the property?
How do I ask her for better price? Is that the best she can do?
How do I estimate closing costs, I guessed $2000.00? Do I pay all closing costs?
How can I be creative?
I would buy this with a combination of my ROTH and Roth IRA