Investor · Boise, ID · Member since 2014 · 172 posts · 99 votes
Hello all,
I just moved out of the El Paso, and have been contacted by a seller there who wants to purchase one of my properties. She has a condo that she inherited and would like to move it prior to purchasing my SFR.
I do not know much about the condo besides similar units are selling for 70-90k. It is a 3 bed 2.5 bath built in the 80's. It rents currently for 750.
She through a number of 65k. She has been offered 35k cash from another investor in the area.
Wondering how I should approach this, or if at all. I believe that I would like to attempt to get my hand in the pot, in one way or another. Any suggestions?
If I am reading you correctly, you now live in CA but have property in TX. One of your properties is wanted by this woman but she needs to sell her condo first. If that is the correct understanding, I will tell you to pursue this opportunity. You need to find out an acceptable price that you can pay her subject to her being able to get a loan to buy your property. (You narrative didn't say what your SFR is worth) Make sure you tie the two transactions together as you don't want to buy her property without your property being purchased. If the numbers work, then move forward. The right number to her seems to be somewhere between 35K and 65K. You are in an envious position as you will be making some profit (I assume) from the sale of your SFR so you can offer her something closer to the top end of that range and close the deal.
For your deal, you need to get a solid ARV for the condo and figure out what/how much rehab is required...only then can you determine what kind of offer you can make on that property. There is one thing I'm a little confused about. You said it rents currently for $750. Does that mean the woman that wants to buy your SFR owns but doesn't occupy the unit? If that's the case, you'll also want to get a copy of the lease and the rental history on the unit. Finally, if you can find out what is owed on the condo, you'll be in an even better position. If the owner doesn't want to disclose that, you can do a preliminary title search. If there is only a primary mortgage, you can probably get a pretty good idea based upon the deed transfer date, which is public information in Texas.
She just placed it for rent @ 750.00 comparable to the adjacent units that are similar, I misspoke. She is currently occupying that unit and wants to rent it out to purchase mine on a lease option. I however suggested to her that she sell the condo, as she owns it outright. I feel that there is a great deal here, even if I were to go in with a partner that is local on her condo, or even just wholesaled it, separate from the deal on my property. I can smell a deal, but my inexperienced mind can not piece it together.