So I'm working on getting my first property under contract. I've been talking with the owner, he is an out of town owner of an abandon house on the opposite side of the country. After a few calls he seems like he is interested to sell. Prior to me calling him, he was in the middle of getting the property appraised externally to be re-financed by bank. Then people from the insurance company will have to assess the inside. After checking it out first hand and seeing that it will need a lot of repairs I don't think he will be interested in fixing the entire property up. I offered to bring a contractor in there to give a more accurate quote on the repairs (since I am not experienced enough yet), but he was hesitant since he hasn't been inside in 6 years. The property also has a large amount of land behind it, where another house could even be built. I couldn't find anything else in the area to compare it to. He was thinking about the possibilities of splitting the land up but for now I was just curious about what the next step is as far as him refinancing. (I don't know how much the mortgage is yet). I do have cash buyers that are interested in homes of this type in this area, but the numbers would have to work.
Let me know your thoughts!
@Tyler Silver Congrats your at the top of the hill hopefully all goes well. Quick question though, why is the seller looking into refinancing the property if he plans on selling it? Also, how much equity is in the property?
He said that prior to my call he was refinancing it to lower his current mortgage repayments. But since he got my call in the middle of the process and is open to the idea of getting cash for it, he would let them finish to see how much the new payments would be as well as the assessed value of the house. The bank will only appraise the outside, and then insurance on the inside he said. My idea was to just bring a contractor over to see the whole thing in one shot. On the next call I'll find out how much is still owed. However, the property itself is 840sqft but it is on the edge of an attached .92 acre of land. Would it be complicated to split up that land for another investor to build on? I feel like depending on what the plans are for that land will effect the contract price.
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