Homeowner · springfield, IL · Member since 2008 · 67 posts · 11 votes
I am recently divorced and I can afford the payments on my house. It will be tight, but I can do it. I have always wanted to get into real estate investing, but just a little nerves. I was want some advice on what I should do. The house appraises at $86500.00 I owe about $80000. on it. It is located in Springfield IL. I was thinking that it is a bad idea to sell now, so I was going to sell contract for deed. First mortgage is $575.00 and the second is about 200.00. I was thinking sell it contract for deed. for $3000.00 down and 750.00 a month. with a five years with a balloon payment. I figure the second Is my responsibility, (my dept) and in five years it sould be paid down pretty good. I will find a inexpensive place to stay for a while. Ask your question and give me your app ions. Thank you in advance. Brian
Minneapolis, MN · Member since 2008 · 691 posts · 12 votes
18y
Brian,
I assume from your post that the house is not a factor in your divorce, and that it is all yours at this point? Sometimes ina divorce a person just wants to get away from the memories of a house that you were in with your ex-spouse, is that your situation? I understand if it is - I have been there.
If you sell as you have suggested, make sure you get a good price in return for offering those terms. Regardless of the appraised price, set your price higher, and get your monthly payment as high as the market will bear. You may be able to do better than you think, like $90-95K. Are you saying the first is $80K, or is that the total of both loans? Try to sset it up so that the buyer pays off both loans if possible. I think you have a good idea. You can rent somewhere, rebuild your personal life, and meanwhile get some good interest income, and save for your next home purchase.. Maybe the market will rebound in fived years as well. Good lyck! Mike
Real Estate Consultant · Member since 2008 · 792 posts · 30 votes
18y
Brian,
Just a word of caution on appraisals. I have no idea what your market is like, but in Florida, yesterday's appraisal is today's garbage...meaning that the appraisal is no real refection of value...especially in declining markets.
I would stay put if you can handle it (financially and otherwise).