I'm looking at a SFR (age 1963) offer is 95,700 (please see image), listed at $112k, to add to my other buy and hold properties. This was in probate in 2010 and rented thereafter and is now for sale.
The seller actually had a 4-point inspection done in 2011 that shows: HVAC and Compressor (2007), roof (1998), hot water heater (1990), and electrical wiring ROMAX throughout the house.
I'm googling ROMAX as I'm not sure what that is. The main panel (100 AMPS) was installed in 1963 and a sub panel later (no year but states 3.5 AMPS or 35 AMPS can't really read the sheet).
The seller replaced a couple of windows but the other 6 are original and the front door looks like it could use a replacement. Things I'm looking at and factoring into my price. Old kitchen and baths. Won't know until I see it but I think it will be good since it has been occupied so don't need to replace these things, ie remodel.
Given the particulars and these numbers that I ran it's above $100 per month. I'm not sure since it just hit the market that the seller will go for such a reduced price. But given the taxes that is the majority of the take away ($), I don't want to go any higher than what I came up with.
And I know my % for R&M ($1,320) and capX ($600) are very low but if for nothing that combined that if something happened I think I could cover it. Home warranty - perhaps. :)
Please can you have a look at these and let me now what you think. Much appreciated...
I wouldn't go any higher than $80,000. Your net is too tight. Do you have reserves to handle un-for-seens during the year of at least $5,000?
Mike Sedlacek, Real Estate Agent in VA (#0225223133)
Thanks @Mike Sedlacek I'm looking at a home warranty for the fact this is an older home even with a newer HVAC system there would be other concerns.
If I do $80k I get $200+ net income.
Not sure seller would go for that or what would entice to sell it to me.
I can get a prequal quickly as I've been in constant communication with my lender and my scores are top and I won't have a problem getting the loan. Thinking of ways to pass this onto the seller I may be able to get them to do a consideration on these facts. Factoring in 17yr roof, 25yr water heater, plumbing and electrical and original windows.
I've been in this situation before when the seller didn't want to sell at my price only to find they did to another buyer-flipper months later for much less. Oh well...
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