What to do with this property

Question

So I got a response to one of my direct letters to a house that had appeared to be vacant. Turns out that the owner was just stuck in California due to the shutdown. The property has actually been kept up really well so it wouldn't make a good flip as I originally wanted it for. The only thing I can think of is possibly land contacting it or just buying it out right as a rental but I'm afraid the rent for a good condition 4bed 1bath sfr would be higher than the area could afford. Any ideas on how to make profit from this?

Kevin Paulk · Answer

@Paris Scroggins  You're missing a lot of key information to help determine a strategy for this particular property.  But I think your putting the cart before the horse in this situation. When dealing directly with sellers you always want to start with finding out as much information about  them, there situation and the property before arriving at any strategy. The information you extract will help shape what you can possible do with this property.

Here are a few questions you need answered : Why is he/she looking to sell? what's there motivation to sell? Do they have a mortgage? How much do they owe ? Are they behind ? What is the condition of the property? How much would it cost to rehab? How many people own the home? What are there monthly payments if they have any? How soon are they looking to sell or move? What is the ARV? What are rents in the area?

Good Luck

Cameron Tope · Answer

Hey Paris,

Land contracting has always been a lucrative strategy for me. However, for some deals, it just doesn't work.

If a lower price won't make the deal work, then it's not a deal and time to move on. Don't be afraid to walk away.

Paris Scroggins · Answer

@Kevin Paulk thank you. These are some good points. So far I know the owner wants to sell because they want to move back to California with family. They own the home alone and were going to originally rent it out and move. They bought it for 77k and put another 15k into it. I'm still looking into rents in the area however. I'll find out about the mortgage this weekend when I meet the seller for coffee.