Still Learning how to analyze deals...Rentals
Ok, So i have posted on here quit a bite. I have been looking at deals and trying to get my head around what is a good deal. Im sure most of it is paralysis by analyisis but would love to have someone help me through this property. Im looking at it as a rental and its 3 townhomes down from me. These properties are renting extrememly high and are going for reasonable money. Here are the things I want help understanding.
Details of the property
- 3b/2b
- Mid row property
- Comps are anywhere from 205k-220k
- No asking price yet just a written for sale or rent sign on the door
- similar units renting for 1900-2100
- HOA of 170per month
- estimating 5-8k in rehab
Questions
- They are willing to sell or rent
(Would this leave them open to the idea of seller financing this deal, If so how do I approach it. Do I make an offer at or near asking or do I lowball it? By the way they asked me what price range I was willing to offer. This was odd to me but Im looking at the property today and I know what they are going for.)
- When making an offer based on seller financing how do I word my contract to protect myself and give me an out if things like inspection come back poor?
- What kind of money do people usually put down on a seller financed deal?
- If I was to go private or hard money to get in, should I be looking at buying it at 80% arv so that I can refi.
- What other issues will i face going the hard or private money route.
I know the area since I live very close in our first home that we bought and live in. We planned on keeping it as a rental because of the high rent in the area. (Currently 500 a month more than our FHA mortgage) I know that the area is hot and will rent quickly. I have some money to put down but need to get creative on the purchase since we just took out an FHA. If anyone has a creative way to approach this or a method they have used that would be great.
Im sure as I get replies more questions will arrise.