Fishing for Ideas to buy neighbor's home for Buy/Hold
Hi All,
Just thought I'd take a stab at asking for some advice. I'm looking across the street at a vacant house (4 beds 3 baths 2,512 sqft). I know the owners needed to move out of state and are asking a tad more than I think they can reasonably get within the next year or so ($199k). Its been on the market for ~ 6months now. Property tax is $2,500/year and I doubt they enjoy being stuck paying that amount plus whatever mortgage payment(s) they have for the unforseeable longterm.
I'd like to offer them a win/win offer whereby I take ownership of the property and rent it out (for ~$1,500/month, I suspect). However, at the list price of $199k, the ROI would be practically nil. Even at a sale price of $50K, the cash flow would only slightly be over 15%.
So, I'm wondering if anyone in the BP community might be able to suggest a strategy that could satisfy the owners (sellers) and the investor (me). All suggestions are welcome.
Best regards,
Mike Klein
Point Freedom Investment Group
Gainesville, FL