Investor · Wheatland, CA · Member since 2016 · 15 posts · 1 vote
I was driving for dollars one day and came across a fsbo in a nice neighborhood next to a local community college.
It's a 3/2 1140sq. Ft. well kept house built in 2004.
They are asking $189,000.
They are asking just under fair market value according to my research.
Does anyone have any ideas for a new buy and hold investor to approach the owners and get a good cash flowing rental?
Thanks in advance.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
Many times the FSBO's are overpriced. If this one is priced well, that may be a sign the owner has some motivation. Go knock on the door and tell him you are an investor and want to take a look. Try to find out if he has any serious motivation to get it sold. Have you researched your local market to find out market rents? Is there a strong demand for rentals? Can you make a cash offer? If so, I always like to put up a high EMD to show I am a serious buyer. BTW, never give EM to the seller. Always place it with a title company.
Investor · Wheatland, CA · Member since 2016 · 15 posts · 1 vote
9y
Thanks for the advice John.
The local market rents are pretty strong, there is an Air Force base close by that gives slot of off base renters.
It would rent for 1250 to 1300.
I have about $10,000 I could use for earnest money, I just hate to use cash if I can do it another way.
But I realize you have to spend money sometimes to make it.
Specialist · TX · Member since 2010 · 64 posts · 29 votes
9y
$10,000 ?. only if you know you can get the rest and if you can get it back if for some reason the deal falls through. Here in Texas the law says something of value, it does not say to put up as much as you can to show your serious. now if you have a solid contract and you control all the necessary funds that might be different.