How to approach off Market deal

Question

Hello BP!

I am very excited to make this post as I might have an opportunity to make my first deal.  I found an ad on craigslist about someone looking to retire and sell their duplex.  I believe this is considered an off market deal as it is not on the MLS or Zillow that I can see.  So I figure I would inquire about the property, but want to know what I should ask.  They provided the annual income of $11,100 and taxes of $2714.  Eventually I will go look at the property, but it is a several hour drive so I want to get some information before taking the 2 hour drive.  So what is information to know before going to look?

Thanks BP

An Duong · Answer

I would def look at the systems (heating and electricity) as well as look for any problems with the roof and structure. Def try to gauge what the rental market is.  I typically use rentometer and truilia (for there crime heat map)

Jerryll Noorden · Answer

yup yup.

It IS possible to find deals there... but seriously unlikely :/

Jerryll Noorden · Answer

I don't consider craigslist an off market deal. (I know I know in theory it is). I consider a deal NO ONE has easy access to an off market deal. Driving for dollars, website lead entry... those (to me ) are off market deals.

Also I do not believe in deals... "DEALS" o MLS ZILLOW CRAIGSLIST...

Hate to be the party pooper here but those places have no deals... "deals", and if they do, they are gone within 2 minutes of posting them.

But let me not be a negative nancy and answer your Q

BTW anyone ever told you you look like mark Zuckerberg?

You ask them why they are selling. What the condition is of the house, is there a buried oil tank (yes? deal over, goodbye ).

and if all these questions are favorable, you ask him when you can pass by.  Between the date set and now, you find an agent and ask her about the property...

But all these pointers are useless I think because I just don't think there is a deal here :(

Jaron Walling · Answer

If it's to good to be true, it probably is. I agree 100% @An Duong, you'll want to check out all the major mechanicals. I wouldn't want a 2 hour drive to fix a leaking water heater.

Jared Baker · Answer

@An Duong based on the information that is provided in the ad I get an ROI of 111% assuming I can get an FHA loan.  So is there any information about the property that would be helpful in knowing?

An Duong · Answer

Make sure you do a rental analysis to make sure you are getting the necessary ROI.

Jared Baker · Answer

@An Duong Based on the properties in the area I would be fine paying his asking price.  If I do get it, it will be a rental property.  Probably do some updating to one side and then the other to help raise the rents.

An Duong · Answer

Figure out what your  Max Allowable Offer will be.  Get comps for the property.  What do you want to do with the property if you get it?

How to approach off Market deal

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