Complicated property, easy going owner

9 Replies

Hi ya'll! Would love any input/commentary here.  Trying to decide if this is worth moving forward on.  

So I've been talking to the owner of 3/1 property she's interested in selling. 

The target property is vacant and has been for some time. I was able to go inside and it needs an entire rehab.

Here is what I know...

- Property is 3/1 and 728 sqft

- ARV on the property is about 80k (lower income neighborhood)

- There are back taxes due of almost 6k

- It needs an entire rehab pretty much

- There are 3 liens on the property for being vacant and not up to code.

and the kicker....according to my research there's a loan for $149,600 in 2006 but the house hasn't been foreclosed on?! She says she doesn't have a loan and she def. hasn't paid any mortgage any time recent.

So there's a missing mortgage it seems?!  I called a title company and they were perplexed as well.

I'm trying to see if there is enough meat on the bone so to speak. 

I think I could get it for a great price but I see a lot of potential risk. Any insights would be of great help! Thanks!

Where did you find out it had a mortgage from?

@William Salas Maybe ballpark your estimate for an "entire rehab"?  You could end up in a pretty defined scenario (regardless of mortgage) pretty quickly.  If it's $50/sq ft for the gut/rehab then it's $36Kish in rehab + $6K back taxes + some kind of holding costs = $35K max for the property.  If you want to make some decent money and have a cushion you'll have to buy it for, what, $20K?  No formula here, just ballparking numbers.  I'm just guessing but if you toss out $20K as a number you might get a tersely worded reply laden with curse words...

That said, I've seen people talk about $20/sq ft for a full rehab, some at $35/sq ft and some at north of $50/sq ft.  You'd probably want to figure that out.

Hi @William Salas If she has a mortgage on the property of $149,600 then she is technically underwater and in this scenario she will only be able to short sale the property to a potential buyer. A short sale can take anywhere from 4-12 months to close on and there is no guarantee the bank will sell at the price your asking. Also, If there are liens on the property you need to find out why? Is this from code enforcement or the building department. If it is code enforcement you can negotiate the liens somewhat. If it is from the building department you might need to bring the violations up to code and this requires pulling a permit, passing inspection, etc. I work the entire Miami market and know it well. If you need assistance analyzing the property you can message me anytime. Good luck!

You need to know whether or not their is a mortgage. What leads you to believe there is? Call the Dade County Recorder. They can verify whether or not there is/was a mortgage and if it has been cancelled.  

My CRM shows it in the property details section.  I'm going to have to run a proper title search and see whats up. 

Originally posted by @Caleb Heimsoth :

Where did you find out it had a mortgage from?

Thanks Andrew, yea my offer is going to be on the lower side for sure because it seems like a lot of risk but the property has just been sitting there in her name collecting fines.  At this point I think she'd be open to getting something rather than nothing, I know I would.  Going to meet with her today.  

Originally posted by @Andrew Johnson :

@William Salas Maybe ballpark your estimate for an "entire rehab"?  You could end up in a pretty defined scenario (regardless of mortgage) pretty quickly.  If it's $50/sq ft for the gut/rehab then it's $36Kish in rehab + $6K back taxes + some kind of holding costs = $35K max for the property.  If you want to make some decent money and have a cushion you'll have to buy it for, what, $20K?  No formula here, just ballparking numbers.  I'm just guessing but if you toss out $20K as a number you might get a tersely worded reply laden with curse words...

That said, I've seen people talk about $20/sq ft for a full rehab, some at $35/sq ft and some at north of $50/sq ft.  You'd probably want to figure that out.

They told me to call a title company :(

Originally posted by @Yvonne H. :

You need to know whether or not their is a mortgage. What leads you to believe there is? Call the Dade County Recorder. They can verify whether or not there is/was a mortgage and if it has been cancelled.  

Thanks for the insight Jack.  Running a proper title search seems to be my next logical step here.  I think it'll help solve these initial set of questions I have.  What part of Miami are you in?  Thanks! 

Originally posted by @Jack V. Ospina :

Hi @William Salas If she has a mortgage on the property of $149,600 then she is technically underwater and in this scenario she will only be able to short sale the property to a potential buyer. A short sale can take anywhere from 4-12 months to close on and there is no guarantee the bank will sell at the price your asking. Also, If there are liens on the property you need to find out why? Is this from code enforcement or the building department. If it is code enforcement you can negotiate the liens somewhat. If it is from the building department you might need to bring the violations up to code and this requires pulling a permit, passing inspection, etc. I work the entire Miami market and know it well. If you need assistance analyzing the property you can message me anytime. Good luck!

Hi @William Salas I work the entire Miami area but focus more on South Miami, Coral Gables area. You can check for current mortgages through the county website court system by the way. If you need assistance I'm always available. 

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