Deal for a buy and hold investor?

Question

Hey folks

I could use your perspective on a potential deal I'm working on.

I want to know if this may be worthwhile to market to buy and hold investors .im concerned about my reputation and don't want to market bad deals... Here is the info..

First, it's in good  neighbor hood.

Owners are tired of being landlords and just want what they owe

Existing mortgages 207k

ARV 245-250k

Rents for $1750

Needs 5-10k to get rent ready ... A little drywall work, some paint and a little carpet... And appliances.

It's a split level on 3/4 acre.. A few blocks from water.

Upstairs is 3/2

Downstairs is 1 bedroom, living room , 3/4 bath and full kitchen... Could be a mother in law unit or even split into a duplex.

The sellers are very motivated and right now we are exploring a lease option, but I'd rather wholesale if I could for even a 2-3k

Any input would be nice.. Regardless I would like to help them somehow...

Chris Harkins · Answer

Are you using conservative numbers on your ARV? Because if your not, there's not a whole lot of wiggle room after that (percentage wise), say if you had to discount it to move the property..

Have you factored in closing costs, prorated taxes, insurance, etc?

I think this is going to come down to your appetite for risk and how well you know your numbers.. If they wanted to sell it for what they owe.. It would probably make more sense for them and for you just to have them do it out right. *To an owner occupant

Personally, I wouldn't touch it.

Kevin C. · Answer

Oh nice @Jeremiah B. ..,, I take it the market is expensive in Portland too?

Jeremiah B. · Answer

@Kevin Carbon I own a couple places in West Portland, but most of my investments are actually out of state, in NC.

Kevin C. · Answer

@Chris Harkins ... I think you're right... I think I will tell them that. I meet with them again tomorrow .. I will also give them the name of someone I know you is a Lease Option pro.

At the very least, it was a great learning experience... Got to go out and talk to a seller.

thanks for your help... I'm sending you a college request.

Also @Jeremiah B. ... What part of Oregon do you invest in?... I plan on moving to the coast one day and would like to invest down in Oregon

Kevin C. · Answer

@Chris Harkins

I got a quote in repairs of 3000

@Jeremiah B.

The house was built in 1973 and they want what they owe.. 207k

Chris Harkins · Answer

@Kevin Carbon The buy and hold isn't a likely option.

A wholesale or a flip on your part might make sense, depending on what the actual cost of the repairs might be. Do you have numbers on the repair cost?

Jeremiah B. · Answer

Oops, missed the rent amount.  Sorry about that.

I don't buy in the area, but I'm not sure you could find a buy and hold cash buyer who is willing to pay less than 1%.

At first glance, I don't think that there's a wholesale deal to a buy and holder here.

Jeremiah B. · Answer

As a buy and holder, the info you provided is helpful, but I also need to know the price, the rent comps, and the age.  Without those three, anything I can say is a guess.

Deal for a buy and hold investor?

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