What to offer on ownere finance blue collar neighborhood house rent $900~1K
Houses nearby go for between 60K-100K based on size and block it's on. Having trouble nailing down a solid number since it's in the city and a block or two makes a very big difference(best est is about 85K-90K ARV if it's in "good" shape, say 5K in rehab). Originally I felt that at $65K it would be a good deal, now thinking I have to get it around $55K or so to make it make sense. Owned free and clear and the guy just doesn't really want to deal with it. he owns the funeral parlor next door and the house has been in the family since his grandfather bought it new in the early 1900's. He said he would float the loan and I think he would be ok with anything that pretty much gets him out of it. He has had it sitting for the last 9-10 months since the last family he had in got in paid one month and destroyed the place. he was renting at $1,000/month but does not know how to screen.
Owner has a $0 basis at this point so everything is taxed. I was going to offer to have him do owner financing on a 6 year ammoritization for the full ammount and pay 3% on it. this pretty much means rent will be simply paying PITI with me coming up with any other money infusions needed for the 6 years. But then it will be paid off. I think he will rather have the short ammoritizationa dn i don't mind having to put in for any of the repairs.
I currently own a campus duplex but will not have the cash to get into another one for at least a year, figured this would get me into something else with only closing costs and about $3K-4K in repairs(only needs to have some of the roof touched up and would like to throw in soe new tile in the baths and some carpet in the bedrooms.
Ideas on this, this will be my first time looking at some cretaive financing and getting out of campus rentals. I have had no issues with the student rentals but this blue collar area has me stumped on finding a firm value and idea of costs on a 100 year old house.
The house is in decent shape
New Furnace
New water heater
New carpet in main living area
New electric service panel and from the mast
There is some knob and tube but a lot of it has been re-done
guess I'm just a bit iffy on moving forward with this since the house is so old. Should I make a lowball offer or jsut walk now and not invest too much time.