Analyzing 1st Possible Deal

[Audrey C.]

Hello BP,

I have a potential deal from a Probate, but need some help determining its value and what to offer to the homeowner, who is right now very motivated to sell.

This is a 3/2 (originally a 4/2). Homeowner is asking for 210K, but property appraiser's has valued at 158K.
Very little rehab needed. Roof needs to be replaced; bathrooms may need facelift, but not necessary for rental.
Square footage 2,724 on 1 acre land. Excellent livable condition. Great neighborhood.

The homeowner does not wish to provide the mortgage balance, but has stated that her monthly is $1,100. Only voluntary HOA of $10/yearly.

Thanks for all your help.

[James Hiddle]

If the seller is selling the property at $210K and the appraisal value is at $158K then it doesn't sound like the seller is very motivated unless he or she doesn't know about the appraisal value.

If he or she does then you need to have him or her lower the asking price down to where it's a good deal otherwise you need to walk from this.