Hello DG Family,
I am following the action steps for chapter 7 of the new book and this is one of the 3 properties that I am analyzing. Here are the facts that I know so far:
Zillow estimate: 120K (taken from range of 90K to 130.8K)
Last sold: 5/2008 for 93.5K
Property taxes paid 2008: 1.37K
Asking price: 64.9K
Now, using what the book tought me I came to the following results:
FMV: 82.6K (I had fun doing this analysis!)
Tentative Offer (including my profit): 51.8K
The bank has invested money for paint, new carpet and repairs for the laundry area. I have not seen the property yet but from what I've seen in the pictures it looks ok. I am considering going to take a look at it this weekend (full time emp. here). I have researched the area with my friends (people that live within a couple of miles from there)and they tell me that is a nice and quiet zone.
One thing I find odd is that the property was sold about 10 months ago and now is for sale again; the fact that is owned by a bank tells me that the previous owner could have been through a foreclosure, but this is just my guess, I would have to call the agent and ask more questions.
I am doing this as a practice and I've found that I like it. If you follow the action steps you start realizing that you can do it. Is not easy, I give you that, takes time, but if you practice enough you will find deals on a regular basis. I still have a lot to cover in the new book and in this REI adventure but I am having fun already. Show me the money! Lol =)
Now, if this is a killer / decent/ bad deal I am not so sure, that is why I decided to post it here. Any comments or sugestions welcome.
Thanks for reading my post. Have a nice day!