OfflineSeller Financing - I presented my offer to the owner, multi-family house, my offer is for 160K, owner owes 205,000 (k). Now waiting for owner to say what his bank will say for this deal. House is appraised for less than my offer. I am looking for suggestions should the bank tell him to reject the offfer. How can this deal work better - I was thinking on offering full asking price of 205K but under a land trust, or offer 190K (short-sale price) with out doing a short sale at all. Again, I looking for some input. Help!
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Gord,
What's the fair market value of the house? That's the most important number.
Vincent
"He who is mighty has done great things for me...He has...exalted those of humble estate; he has filled the hungry with good things..." Matt. 1:49-53
take the fair market value, deduct repair costs (atleast), and you will have your offer since you are buying to hold. make sure rent will carry costs of running the house and still have positive cash flow. Multi's are good, I like to make sure that one rent will either carry the mortgage or atleast be close to carrying it just in case one apt is vacant or you have a problem with one tenant. just my out look on it.
remember figure in property taxes and if tennants pay utilities or you. find out rental rates in the area on simular bed and baths and sqr ft.
good luck.