Always hunting for the next great deal I across what i believe to be a GREAT buy. New to this but wanting to get into property for a long time I think its time to take the next step.
What I have found is a package deal on 3 separate house. Now I know this sounds like a lot and I'm always cautions of biting off more than I can chew but I think this is perfect for me. The 3 houses are located directly next to each other 222,224,226 and are being sold as a package deal. 222 and 226 are single family houses currently being rented at $800.00 Plus the cost of utilities . 224 is a double unit that is also currently rented at $400.00 plus the cost of utilities. All 3 structures where built in the early to mid 1900s but have such been renovated. New hot water heaters, new furnace, new boilers, and all of the roofs have been redone in the past 7 to 10 years. A single owner is selling all the houses in a package for a asking price of $100,000. I think this is a fair price to begin with but I think I can close the deal for a less. Im still in the process to find the motive behind why the buyer is selling along with how flexible he really is.
It seems that every chance I take to make a move on a great deal seems to crumble around me when it comes to the bank. My lack of experience seems to be my killer every time I try they seem to say come back when you have experience with RENTAL property. Ive considered buying a duplex and living in one side to possibly get myself in the door but this opportunity came up before I've had the chance and I refuse to let yet ANOTHER great deal in my eyes pass by again. I have been looking into possibly taking a hard money loan and a year down the road possibly take a long term mortgage out on the property to increase the the cash flow that actually makes it to me.
So that is just a bit of what i have been working with. Thank for reading let me know what you think. Also I know when I made my first post it told me that I'm not allowed to post some things and if i have done so please someone let me know so I can remove it or try again or find out if i have to increase my membership to talk about this.
It's all about the numbers. You need to know what similar properties have sold for and what they rent for. That is the starting point. Then you need to know if the properties are in good enough condition to get market rents or if they need rehabbing. If rents are below market and there are tenants in place, it gets more complicated.
Don't let your eagerness push you into a non-deal. Run the numbers and make your decision to buy based on the numbers.
@Keenon Trevor Sounds like it could potentially be a great buy. Under 50k mortgages can be hard to obtain. Where are these properties located?
Thank you Doug McLeod I will look more into if the units are being rented under market. I have taken a walk threw all the units already I would say they do not need to be rehabbed but if i did a bit to update it a bit it would absolutely increase the value of the homes. Basics like carpet and some new paint would indeed help but they are currently in good living condition. I will also try to slow myself down a bit I must say i am very eager so i will be cautious to not let that blind me.
I was told to get an inspection before purchasing any property. I hope everything works out for you.
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