Evaluating a Deal!
Seeking advice!
A gentlemen contacted me about selling his lakefront investment property. He had purchased the home 2 years ago for $100,000 from the bank as a foreclosure. He did a lease option on the home for $180,000, of which $25,000 was advanced. The tenant stayed in the property 18 months and paid $`1,000 per month. The tenant just went through a divorce and up and left this past week.
The home is 4 bedrooms/4 bathrooms, 4,700 sq ft, 3 levels with finished basement. It has a 2 car garage and 1200 sq ft guest house. The house sold on the MLS in 2007 for $335,500 after 191 CDOM. In ground pool in the basement.
The home needs significant repairs. The basement has water damage/mold from years of unfixed leaks. It appears the leaks come from the roof, in the center of the home as an addition has been built. HVAC needs updated (1995). The chimney is falling away from the house. Plumbing and electrical appear in order. Would of course need paint and new carpet in the bedrooms.
The gentlemen said he would take $160,000.
Being a new investor I would like to hear my BP family's thoughts on the deal. At the beginning of starting my business, I am not super concerned about making a lot of money. I am more concerned about my name/reputation.