How Do I Analyze This House

Question

Here is the info from a property i found on zillow, Im new and trying to learn about investing in notes, can someone tell me if this is worth exploring, or show me how?

3br / 1.5ba, 1,059 sqftLot size: 0.45 acresBuilt in 1973Mostly brick with vinyl on additionCarpet and linoleum floors

Repairs: $15k-$18kTax value: $65.5kRent range: $650-$700

Account Closed · Answer

I want to owner finance once I purchase Steven Picker.

Account Closed · Answer

It seems you are mixing up 2 different terms investing in notes,tax value and you have left out the most important part

1-purchase price?

2-Repairs (good you have that)

3-ARV -what will the home be worth after purchase price + repairs

4- @Steven Mitchell mentioned your expenses

5- What are your plans for the home Rent-Flip -or finance a new owner( take back a 'note")

Gail Greenberg · Answer

OK, @John Burwell....

1. What IS the purchase price for you and what are fixed up houses in the same neighborhood selling for?

You might not have to fix it up to sell with owner financing. Lots of people do little to no fixup and just factor that into the price. I, for example, bought a distressed contract for deed in Michigan, the people didn't want to stay and start paying again so now I have the house. It needs a new kitchen, but I'm not putting it in. I'm making it as clean and fresh as possible and making sure they have a functional kitchen. Fixed up houses in that neighborhood sell for $65K. I'm selling this one for $55K - $3000-5000 down and financing $52,000 @ 10% interest for 20 years for a monthly PI payment of $502. If they need a lower payment, I'll make the term longer.

2. Would you be selling to an owner-occupant or getting it rented and selling as a turnkey rental to an investor?  The sales price will be calculated differently and the terms of your owner finance will likely change.

Let me know the numbers and some of the other crucial pieces - like where is it? - and I'll be happy to give you some ideas on how to do it.

Gail Greenberg · Answer

OK, @John Burwell....

1. What IS the purchase price for you and what are fixed up houses in the same neighborhood selling for?

You might not have to fix it up to sell with owner financing. Lots of people do little to no fixup and just factor that into the price. I, for example, bought a distressed contract for deed in Michigan, the people didn't want to stay and start paying again so now I have the house. It needs a new kitchen, but I'm not putting it in. I'm making it as clean and fresh as possible and making sure they have a functional kitchen. Fixed up houses in that neighborhood sell for $65K. I'm selling this one for $55K - $3000-5000 down and financing $52,000 @ 10% interest for 20 years for a monthly PI payment of $502. If they need a lower payment, I'll make the term longer.

2. Would you be selling to an owner-occupant or getting it rented and selling as a turnkey rental to an investor?  The sales price will be calculated differently and the terms of your owner finance will likely change.

Let me know the numbers and I'll be happy to give you some ideas on how to do it.