Updated about 6 years ago on .
Debating first deal with seller financing
I have found a potential deal in my local area. It's a duplex that's been listed for quite a while on the MLS. The sellers are an older couple that don't want to deal with rentals anymore.
Here are more details:
Built 1932
Duplex
Unit 1: 2 bed 1 bath
Unit 2: 2 bed 1 bath 1 non-conforming bed (can't make it, so it stays)
Units should rent for about $800 for unit 1, $850 for unit 2, but are currently vacant.
Most of the updates/rehab have been done on the inside. It has been re-plumbed. Electrical was done probably 70s or 80s. The outside is where it's ugly. The ground has settled and some concrete steps have fallen from the foundation. I couldn't tell the extent of the foundation damage. There is a dormer that has some rotten wood/siding with possible leaking, but I couldn't tell when I was in the unit. Using the BP Rental tool using realistic numbers from another duplex I have in the same town , this place would cash flow quite well, almost $200/per unit.
The place has been on the MLS for 250 days, and has been reduced more than once from $170k to current $135k.
The question is how bad is the foundation, and is it enough of an issue to not make a deal. Or would it be best to just negotiate the repairs in with the price somehow?
The seller is willing to do contract for deed with 10% down.