Columbus - Is a slightly discounted house enough for a landlord?

Question

As I am marketing for sellers, sometimes I find sellers that are willing to sell at a discount. The discount is not a wholesale type of discount. The sellers are willing to sell 15-20% off of market value. I can find no other use for these other than someone who wants to buy and hold the property...as-is. I think I could do a wholesale type deal where I get a finders fee but I am not sure if that is good enough for a buy and hold investor. Does anyone have insight on if I can market these deals on an assignment?

Todd J Killian · Answer

Usually need cosmetic fixes, $1-3000 in work. I recently had one where it was carpet and paint. For 20K under market value I would think that is a good trade off.

Account Closed · Answer

Most people buy for cash flow over appreciation and with only 3k rehab cost that's not bad. I would be interested if they were multifamily.

Shaun Dillon · Answer

@Victor Vella

Victor I’m just starting out in Columbus. Why do you say it’s more of an appreciation play here?

Remington Lyman · Answer

@Todd J Killian If you find an owner that is looking to sell but not at a price that works for a wholesaler then you should connect them with a Realtor

Victor Vella · Answer

As an investor I believe columbus to be more of an appreciation play so I think price to market is less important If the seller is offering a decent cap in short term

James Wise · Answer

What you want to do is get yourself a license. State of Ohio requires a license to connect a buyer and seller together in exchange for a fee. Don't listen to the smoke and mirrors of those saying that a purchase and sale agreement somehow circumvents real estate law, it doesn't. They just want to sell you on wholesaling courses and the like. Cool thing about you is that you are in Columbus which is where the Division of Real Estate is so I would imagine it'd be easier for you than the average Joe to take your business plans on over one of the Division's investigators to ensure you don't get yourself jammed up the rear end with fines. They have come down hard on many unlicensed individuals in the last few years. I have seen several individuals with 6 and 7 figure fines, don't want to add yourself to that list.

John Thedford · Answer

@James Wise

Todd J Killian · Answer

@Remington Lyman wouldn’t I have to buy the house before listing it on the MLS?

Remington Lyman · Answer

@Todd J Killian You should work with a Realtor to sell the property on the MLS

Charles Carillo · Answer

@Todd J Killian

Are the properties rent-ready? If so, you might be able to sell them to turnkey investors.

Columbus - Is a slightly discounted house enough for a landlord?

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