Ok, this is my first property I’m looking at. The only reason is because I noticed it’s been on the market for a while. It is a 4 unit building-actually it is 2 bldgs on 1 lot. 1 is a triplex with 2-2bd & 1 efficiency, The other is 2bd SFH. It caught my eye because the ad said possible owner financing. The first time I saw the ad they were asking 169K. I recently noticed it is still on the market, but they dropped the price to 149K. So ready to take action (or at least practice) I called the 800# to have more info sent to me, didn’t leave my # though (still scared). A couple of days later I got a phone call from the realtor. The first question I asked was how he got my #, found out that the 800# captures the # when you call in (first lesson). I found out that the property has been on the market since Feb., and no one has looked at it since early summer. The info he sent me was basic property info, so I asked if he could send me lease info, expenses and the terms the owner has for financing. He sent me the lease info & the rents bring in 25,020 (low) & 27,540 (high), the owners offer cheaper rent if paid by the first, with expenses @ approx. 8,065.. So that leaves 16.9K-19.4K cash flow. Ok I’ll look a little deeper. I noticed that the leases are all about to expire (keep that in mind). I tried to look up on total view & could not get any info. So I tried others like zillow & still nothing would come up. So I drove by the property (not far from me) & got the neighbors address & looked them up on zillow, when the results came back, I scrolled down where it shows comps & there was not one for the property I was looking at. Others around it were average 90-100K, but they are SFHs. I called the realtor back and asked about the terms and he said the owner really don’t know how they would work it, but that she didn’t want a first time investor (that’s me), she wants someone who has been a landlord before. Also that she wanted terms that both parties have a win/win (I thought cool). I also told him that I noticed that the leases were about to expire and that I would want to talk to the people to get a feel if they would re-sign or move out. He said that the owner is really protective about her renters, but he would try to get a feel for their plans.
I went to county website & the tax assessed value is 62K! Wow! This lady is asking for more than double the assessed value. I understand it is a cash flow property, but oh my gosh!!! Is this typical? I also found out that she is a investor (quite greedy in my opinion, but I could be wrong) and she has a couple of other properties. Oh by the way she bought the property for 35K in 2002, she put about 16K in rehab into it. So, she has approx. 50K in it.
So your opinion please!!! Should I offer or run? Any advise would be a huge help!!
Thanks in advance!