May be working on my first deal. But need a few questions answered. Talked to seller tonight. He has 4 Bedroom 2 Bath house 2300 sq ft. Tenants are moving out at the end of May 2014. Seller doesn't want the property anymore. Has property management managing the property for him now. But just doesn't want to be a landlord. He wants to sell but I'm concerned on how to proceed. He refinanced the property last 2013 for 100K. His asking price is $125K. According to tax records the property was assessed at $162K. He is renting this for $995.00 a month. Haven't seen the house yet. Hopefully we see by this weekend. Tenants have been in the house for five years. He says house is in good condition, carpet will probably need replacing. I'm concerned about the amount owed and his asking price. Although he need say that "there is room to deal" Please give me ideas on how to solve his problem. Thanks in advance.
First you have to figure out what it's worth in good condition. Tax assessments aren't relevant. Those are for taxes, not buying and selling.
IMHO $125K is too much for $995 in rent.
thank you @Jon Holdman appraised at 168k according to seller. Will do my due diligence.
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