The deal next door (maybe)

[Ramon Alire]

I am new to this and still learning but I have developed a passion for real estate. I spend several hours a day reading, researching and listening to anything related to property investing.  Recently, I had a light bulb moment driving down the street one block over. There is this huge freshly remodeled house that has been for rent for over a year now. 100% vacancy.  By far the biggest/nicest house on the block (1950's built)

But why is it vacant?? Modest neighborhood and schools, generally nice, a few bad apples but nothing to write home about. Other houses in the area are on the rental market for what seems like about a week.  Housing in Denver is nuts right now, so very out of the ordinary.

The short answer is. The house exploded.  Well, a propane tank exploded in the garage and caught fire to the property and the adjacent home. After the initial shock and police tape, things began to settle and so came the rebuild. Essentially a total rebuild, most of the frame was still intact.  I drove passed the house frequently and was always excited to see the progress. Once it was done, a for rent by owner sign went into the yard and the front window.  There it sits, almost a year later.

Here's the part where I ask the BP community for advice.  I think with an attractive enough offer I could buy this house from them.  After a little research, it turns out they've owned the house free and clear since 2010.  My thought is to offer some kind seller financing, using a down payment and monthly cash-flow as an incentive.  I see that they're are interested in passive income hence the rental signs, but I fail to to see any effort on their part to get it rented. Maybe they're charging entirely too much? Regardless, I would like to offer to take the property off their hands to use as a rental property. It's basically turn-key minus some yard work.  

Full disclosure: if I pull the trigger on this, it would be my first deal. Scary! and exciting.  I'm not sure if what I'd be asking is even on the table.  I'd still like to take the initiative and ask.  If I get good reception and interest I'll start looking for an attorney to draw up the note. 

So my primary question would be: is there a particular avenue to establish the seller financing or is it all done via lawyers?

Next I would like to know.  Has anyone ever done something like this? purchasing a destroyed then rebuilt house with seller financing?  I'm sure it's a thing.

Any info or feedback would be greatly appreciated.  Have a good one. Thanks for reading

-Ramon

[Tanya H.]

I think this is a very smart move.  Right now, you can only speculate on what is going on with the owners and with the property.  There are a variety of possible scenarios and you will never know until you ask.  You are totally right in that you might be able to offer them some help.  

You have the absolute right attitude to make it in this business - you are looking for those types of win-win situations.  

Please keep us posted as to what you find out.