6 unit for 120k-Estate unload
BP Friends,
I was watching my local market, as I always do just to keep up, and I found a 6 unit complex that is 120k. I was intrigued. Three of the units are currently rented, 2 for 10+ years and one for 1 year and everyone is looking to stay. All three are renting for about 550 apiece. The set up of the property is a 4 unit-1bd 1ba structure in the front, and a duplex on top of a garage in the back. The owners have sunk about 8k into getting the other units tidied up and presentable. Then the property went off the market being unsold. I was somewhat flabbergasted. I did not pursuit heavily because this last November I bought a foreclosure and flipped it and am currently still dealing with some of those reno costs. I told myself I was going to wait until next year to get my next property, so I could pay down some of those debts. But this looks too enticing. I reached out to owner, however it is owned by an estate. I tracked down the executor of the estate. They are looking to unload it ASAP since none of the family members want the responsibility of taking care of it. I asked if they would be interested in entertaining creative financing options. The executor said yes. But since they are looking to unload ASAP, and it is in an estate, something like sellers financing wouldn't work. I did some quick work on my DTI, I sit right at 40% at the moment, with the possibility of the new mortgage after 20% down, I would be closer to 50%. I have about 5k in my savings and am trying to come up with the best way to approach this. The executor said he is in contact with some brokers, and is not interested in listing it again. I don't have the 20% to put down at the exact moment, I have about $4500 in a line of credit, and 10k on a credit card(absolutely do not want to go that route). I have not gone to see the property yet, but I have driven by multiple times. Of course, this purchase is contingent on the inspection, but I wont be getting an inspection until I can seriously get the funds available.
Thoughts? Ideas? How would you approach? What am I missing?
Christopher J