Where have you looked for a loan? Banks? Private lenders? How many of each have you spoken to? Are you planning to flip it? Or rent it out? If you are looking for a partner (or a loan, etc.) have shared the numbers to estimate a return? Have you looked at any other options, like a HELOC on your own home or anything like that?
So if I understand the bank would not lend you money because the appraisal came back lower than the asking price?
Also are those rent numbers current or projected post-rehab?
You should work with a realtor and not necessarily with the listing agent. A buyer's agent works for your interest and does not cost you anything as the fees are paid by the seller. So to me that triplex is worth even less than $50k.
Did you view the property yet?
Donald, did you look over that house with someone who understands buildings well? I have been in that house. It has foundation problems. The back building has very serious foundation problems, too. Also, the city has the lot zoned as a two unit. As far as I can tell there is are no documents for the back house. The city is getting more strict about permits. Probably that back bukding just just needs to be torn down. Having looked at it with a builder I concluded I wouldn’t pay more that 30k for it. Be sure you look at it with someone who understands foundations and hamtramck permits before you buy!
@Ken Bresser Good advice! One of the reason I love this community. There is always someone on the ground to chime in and that has knowledge you don't.
I would ask a contractor. He can give you a realistic estimate on what it would take to fix it.
And you need to think through that back house well. The city won’t likely give you permission to fix it and you certainly can’t use it as it is. My builder though it might have asbestos siding. That’s not a problem if you leave it alone or cover it with more siding but if you have to tear it down you’ll pay a premium for asbestos.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you