Buying house on .9acre lot with existing barn.
Hello, I am brand new here but have been listening to the podcast for some time. Just a little background about me. I am a 31 years old plumber. I've bought a home in Illinois in July of 2021 for around 200k. I've spent the next half a year or so remodeling the entire house, spending about 60k for all new plumbing, heating, electrical, hardwood floors, kitchen, and about everything else besides the outside walls. About a month or so I moved to New Mexico following a girl. I am renting out my home for a cashflow of 900/month.
Here is where I would like some advice. Getting involved in real estate, I'm reading a book called "Crushing it in Apartments and Commercial Real Estate" by Brian Murray. In the book, he talks about unlisted properties that could be gems either for flipping or wholesale. While trying to find some fresh farmed eggs for breakfast, I stumbled upon a woman who is selling her home, because her husband passed away last year, and she is having a hard time with mortgage payments. The home sits on a .9 acre lot, with a barn in the back used for horses, there is an electrical meter attached to the barn. I wanted to find out more information about the property but the problem is New
Mexico is a non-disclosure state. How would I proceed to run some numbers on the property itself? The lady let me take a quick look inside and by my best judgement its not in bad shape. The a/c looks newer, and I'm guessing the furnace would be too.
I would really appreciate any input, to me this almost looks like a gift from above that dropped right as I am absorbing myself into this industry. Thank you.
What information are you looking for? The numbers you need are - how much would she like to sell the home for (get this from the seller), how much does it need in repairs (if you've already remodeled a house you should have a decent estimate), and what it's worth after it's repaired (run comps on zillow if you have to, or a local realtor could help you out with this).
Great cashflow on the Illinois rental btw.
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Not sure I get the barn angle. Do you need a barn? Will you use it? Do you think it adds value to the property? Because it will only add value to a person that wants a barn, others will just find it a nuisance. Found this out myself...
Hey there @Bogdan Perszko - Welcome to the BP community! Wait so are you in Illinois or New Mexico?
It sounds like a perfect subject-to deal where you can take over the mortgage payments...consider watching some of pace morbys content on the deal structure.
What exactly does it mean if you are a non-disclosure state? I don't think that is the case here in Chicago.
