Newbie with a motivated seller

3 Replies

Total newbie, considering cashflow, appreciation not really considerable in this area.

In talking to the owner of an off market SFH that he rents to his daughter he tells me the house currently needs repairs he can not afford to make and is looking to offload the house but wants it rentable to his daughter still. (Neighboring houses)

Current mortgage is about 34k

FMV is about 50k, taxes 3360, rent is 1k/mo

house needs a boiler and roof repair. I'm guessing 12k or less.

In the perfect world I would just take over his mortgage (and he wants 5k to repay DP lender.) And use my cash to fix. But I read assuming mortgages is tough,and a 40k mortgage is just as tough and adds to costs.

 I could pay cash for the note and leverage the repairs, but I'm open to ideas.

Also beings she wants to rent it indefinitely, should I consider a 5 year lease with 2% yearly increases?

In the real world you shouldn't be trying to buy this house.  Why are you trying to buy this house?  Don't sign 5 year leases...sign 1 year lease.  Why would you want to sign a 5 year lease?

It sounds like the seller is calling the shots, and you are letting him.  Why?

Originally posted by @Joe Villeneuve :

In the real world you shouldn't be trying to buy this house.  Why are you trying to buy this house?  Don't sign 5 year leases...sign 1 year lease.  Why would you want to sign a 5 year lease?

It sounds like the seller is calling the shots, and you are letting him.  Why?

 The seller didn't suggest a 5 year lease, and I haven't suggested it to him either.

Originally posted by @Joe KQwen :
Originally posted by @Joe Villeneuve:

In the real world you shouldn't be trying to buy this house.  Why are you trying to buy this house?  Don't sign 5 year leases...sign 1 year lease.  Why would you want to sign a 5 year lease?

It sounds like the seller is calling the shots, and you are letting him.  Why?

 The seller didn't suggest a 5 year lease, and I haven't suggested it to him either.

 Good...don't.  You lose 4 years of options.