Deal with tenants...

[Tom Nellman]

Hi,

We have sourced an off market deal in Tulsa, Oklahoma. The seller owns it outright and only wants 10k to get out of the property and the property will ARV at +130-140k easily. She took the tenants to court and lost during covid, they have renters that won't leave, but no signed lease, suppose to be paying week by week but stopped paying and she just wants out. Is this something to avoid at all costs, tenants will likely destroy it and make it tough to possess... or is there a way to solve this and get a great deal? Appreciate any input.

Thanks,

Tom

[JD Martin]

Originally posted by @Tom Nellman:

Hi @JD Martin, thanks for the reply.  She only wants $10,000 for the purchase price, not a 100k, so I am assuming it is wrecked.  It's a 2300 sq ft 4/3, so assuming $40 a sq ft to fix it up if trashed, would be $92,000.  The exterior actually looks really nice but I'm assuming a total renovation on the inside due to her wanting out so quickly, she really just sounds exhausted and wants to be rid of it.  The numbers seem to work and it's in a good neighborhood, just not sure if its worth the risk unless we can get the tenants to agree on a cash for keys deal before closing date.  Thanks for your input!

Best,

Tom

 This has warning signs all over it. I would be sure to do a serious title search and title insurance if you go forward. A lot of times these "owners" actually have all kinds of liens and judgements against the title and are just looking for a sucker to wash them out and let them walk with some cash.