Spoke with a seller that recently retired and is looking to move to Florida. Here are the numbers:
3 BR / 2.5 BA Townhouse, built in the late 80s
Mortgage Balance: $165k
Monthly Payment: $1,867
($1,610 (PIT only) + $83 insurance + $74 HOA + $100 in estimated utilities.)
Potential Upgrades: Almost none, estimate $1,000 for paint/carpet, but it's good as-is.
Seller's Asking Price: $348k
I searched for similarly sized townhouses in the area that sold in the past 90 days, due to lack of comps, and I got an average of $265.5k. I worked backwards from there to include acquisition costs, sale/listing costs, repair costs and my profit and I've come to an offer of $205k (or $184k if I go with a hard money lender.)
(Other townhomes in the area have sold closer to her asking price, but are generally larger SF units and have more bedrooms and/or bathrooms.)
The seller is quite adamant on her price and is willing to go as low as $330k, but that's it. There isn't a set amount of money she wants because she's got enough in the bank and isn't worried about living expenses.
Thought about taking the subject-to route, and depending on the source, the rental market says I can rent from $1,600 - $2,000. Like my other post, I don't see much cash flow.
I'm hoping I can get some help/insight with coming up with a couple more offers that can be a bit more enticing. This seller isn't highly motivated to move, but I'd like to get in front of her with an offer before she hands it off to a realtor in a month.
Thanks for the help, BP!
I don't know where you are getting these properties but you should be able to discard them in about 5 minutes. I would suggest that you not concentrate on the properties but look for motivated sellers first.
From what you've shared, this seller isn't motivated or willing to budge a bit. You aren't even in the same ballpark. Move on to the next one.
Ok, thanks for the advice guys.
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