My neighborhood is an up and coming neighborhood in the Norfolk City limits with many houses dating back 100 years, and 80% are pre-war. Starting out in 2003, investors started coming in a flipping houses, and over the last 15 years the home values have gone up as the neighborhood has become more "gentrified." The neighborhood is a mix of people who have lived here since the '70s, who's houses haven't changed since then, people who moved in in the 80s and 90s, who have taken good care of their houses, and people who moved in in the last 15 years, mostly into flipped houses, or houses DIY flips. Home prices range from $40k for a 2/1 rancher that is vacant and needs full restoration to $400-$500k depending on size and location (some riverfront, no private docks). Most of the flips are from estate sales or foreclosures.
There is a Quad in my neighborhood that is one of the local eye sores. It has new windows, but otherwise from the outside, needs a new roof, new stucko, paint, pointing, and other obvious structural work that an old building would need. I imagine the inside is similar. The owners of the property bought it in 1972 for $29K, and are currently in their 80's. Current tax assessment is for $450k.
I noticed yesterday that it has a "for rent" sign out front with hand written phone numbers. My impression of the property is that the owners use it as retirement, most likely with other fixed income. They live off of everything they make, and thus are unable to put the money towards repairs that the building desperately needs, both to keep it structurally sound and to increase rent values.
What I would like to do is talk to them about possible Seller financing, where they would get guaranteed money that is the same, if not more than they currently make in rent, but without the burden of vacancies and repairs. Meanwhile, I would purchase it from them for a fair value, put cash into it to fix it up, and increase the rent to make my profit.
I want to call them and make them this offer, but I don't want to seem like a pushy investor. I want them to know that I have their best interests in mind, while being able to help both of us out. I want to do this in a way that does not offend them however. They have owned the property for over 40 years, and have most definitely had offers buy it. Does anyone have experience with something like this who could give me some advice, lessons learned, and general insight?
check this tax record before you make an offer also go to Norfolk air and check code violations as well to see if it is in a rental inspection zone all before you offer to purchase.
You may need some leverage to get the price resonable before you take on all the problems.
Lisa Doud, Doud Realty Services INC | 757295‑8007 | http://www.doudrs.com
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