I'm a new Investor in Charlotte, NC. I have a potential seller who is asking $125K for a house that, she says, is free and clear. How do I structure this deal? I looked up the rents in the area and they are between $750 - $756 a month. Do I ask her how much does she wants as a down payment? Should I even bring that up? For what period of time do I write the lease up? 1,2,3, or 5 years or more?
Do I have to have a license to do this?
First of all you are way too excited about this deal to step back and look at it like you should. Are you keeping this for yourself or flipping it? REgardless of which you plan on doing, my personal opinion is that to buy a home for $125k that rents for $750 per month is a very bad deal and those numbers dont work for anyone. For this home to be remotely attractive the rent would have to be in the $1,250 minimum range or the price needs to be $50k on the purchase side.
As the numbers sit like you mentioned there is no deal here anytime soon.
Move on and good luck
@Sherri T. said.
At the moment in time, seems like you're putting the cart before the horse. Do some more homework on this.
Thanks for the input, Curt and Gary. I'm really not that excited about the deal. I'm just trying to learn. I appreciate the advice.
You've managed to do the first thing that a lot of us have trouble with in the first place. You are actually seeking deals. I hope to see more of you around the forum. Your post has done a lot. Great questions as well. I applaud your initiative!
Thank you so much for the encouragement, Earl!
Hey Sherri! It is awesome that you are getting out there and seeking motivated sellers! If this does not work out for you I would love to help the seller out in listing the property and getting it sold. Sounds like a better deal for a retail buyer. Unfortunately due to state law I can not offer you compensation for the referral but I would love to take you out to eat some time to show my gratitude! Thanks!
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