Update: Need suggestions, advice and more...

[Eugene Thompson]

So the homeowner I wrote about this morning told me the whole story. Fiance needs to dump property; she's in over her head. Home would need all of the equity it would have if it was in good shape to rebuild and fix it in its current state for sale later on.

Mortgage (owed) = $66k

Comp = $130k to $140k

My general contractor , an honest man, asked the fiance if he wanted us to pay off the mortgage with him assuming that was all we were offering his fiance). The guy then shook his head as if my contractor is an idiot. This guy is actually expecting us to cut him a check for this property! Mind-boggling.

My contractor then went to the city to see how feasible a demolition would be. That's how useless the property is.

I know people get wonky when it comes to financial hardship and maybe losing a home, but why do they always seem to take cash buyers for suckers?

How would seasoned investors and buyers here handle this matter?

[Brian L.]

You handle this by making an offer that makes you money. If they don't like the offer you leave them a business card and kindly say "that's my highest offer, call me if you change your mind". Move on to the next deal.

One good take away lesson: the owner told you $15k in repairs and it turned out to be a complete demo. Never take their word for it, a sellers perception of necessary repairs and cost is usually way off.