deal or no deal?

Well, as you said, you haven't had a chance to look at it yet. You do not want to get your hopes all built up and nothing happens. Check out the property, research the comps, find out what the house was last bought for, is the house paid in full, cost to repair, and appraisal after etc. Another great idea if everything checks out is to bid low and flip for a decent profit that will be a win/win for all. Hope everything works out. God Bless.

Sandra

Thanks for the info. I apologize but I'm 21 yrs old and am not 100% educated on every aspect...but how would it affect me if the house was/was not paid in full already by the current owner?

You would need a new mortgage to buy the house from the current owner so they could pay off their current mortgage or you could do owner financing if its owned free and clear (meaning there is no mortgage). Other options would be to do a Subject To deal were you'd essentially create a wrap around mortgage on the existing mortgage, subject to the existing mortgage if there is one or do a lease option making sure your payments will cover their existing mortgage and generate you a postive cash flow. Those are some of the strategies you could use to buy this house. First and foremost do your due diligence to check the recent comps (sold) of similar properties and get an home inspection to find out if there are any major issues that will need to be address by the current owner.

You can ask them to make the repairs if there are/is any major repairs or negotiate the price even lower or walk away.

Hey champ good job taking action first off!!! And your 21??? Even better for you!!!!!!!!

Solution sounds pretty easy to me it just takes what you already done, ACTION.

First things first... just as Atlcamel and SanBern said

Get Educated! You can lead a horse to water, but you can't make him drink! NO NO no bad one... uh... here: Give a man a fish and you have fed him for the day, Teach a man to fish and you have fed him for a lifetime. Funny, they both kinda work here... anyways get educated about this stuff, it will only help you, you can ALWAYS come back to this website for help, but you should also learn a lot of it on your on as well. That way next time Atlcamel says wrap around mortgage you won't look like a lost puppy What I used to do was read the site lol and then copy paste EVERY TERM I didn't know and GOOGLE IT LMAO!!! YEA REAL WINNER!!!!

Do your due diligence. Due diligence is where you simply take a look at the house. Find out whats wrong with it, if anything. You might want to take a pad and pen with you, just jot things down that you know need fixing, like you need new carpet, you need new paint, need new furnace, stuff like that. New Windows, new house, new laboratory.. whatever! But at least for me it makes it easier to write it down as I go thru the house.

Then like SanBern said, do some ground work... simple things that you really don't have to stand up from your computer to do. Like check the comps, that's the competitive homes prices and what they have sold for before, or if they are selling now, how much for. Is the house paid in full? Like does whoever is selling it still own the bank any money? If so how much? Important to know stuff like that because if they owe the bank money you know that's there bottom line, means you really can't offer them anything lower then that because no matter what they'll turn you down. Now you want to find out how much is the house actually worth, that's called the Full Market Value.. (I'm sure it's Full but the other two are right) You can do that by going to different websites and plugging in the address of the home and see what they come up with. Websites like Zillow.com or eppraisal.com (my favorite). Some of them you can find info about recent comps and sells price right there. You also want to look at how much the property after repairs are done, sometimes the value is above the FMV of the house in it's current condition.

Now you just did some ground work on the house, so how much would repairs be? You could take your due diligence list and work off that... see how much it would cost to install that new laboratory. Well... maybe start with the carpet and work your way up. Once you figure out how much is the repairs you can make an offer. When you make an offer you can tell them, thanks Indiana Joe, that you like the property but.... (insert problem) ex: I like the property but that laboratory is so outdated... (and overplayed heh heh) Just keep going down the list like that. You can make that your reason for offering less for the property. Don't be afraid to offer less... the worst they say is "No, thanks for playing" then after a little bit of time you can resubmit your same offer and they might say yes... who knows but don't be afraid to submit lower then what they ask for.

5 bedrooms is A LOT of rooms, you could rent it out and if that's what you truly want to do then do it! Think of your other options as well. If a SINGLE family, that NEEDS 5 bedrooms can afford your rent, they probably could purchase it, I would Rent to Own it... Or Lease it out with Option to buy. OR you could just hold it to rent it out.. your choice. Or you could just flat out sell it if you bought it cheap enough flip it resell and grab a profit. If you do that don't resell at FMV sell it for less so someone will grab it up. You STILL make profit, no need to be greedy.

Another thought would be is there a college near by? Because you could just rent out the individual rooms, which you could do regardless... not sure how much your rent is in that area but if your rent for one room included everything minus cable that's 500 * 5 = 2500. If you had a mortgage for the ORIGINAL 165,000 it wouldn't be more then 2500 a month.. more like 1200 MAYBE.... then your utilities are probably 5-600 a month all together (and YOU can control how much gas they use, you can lock up the furnace or the control box ) That's only 1800. 2500 - 1800 = 700 in cash flow EVERY MONTH FOR YOU. PROFIT. Anyways just some options just running thru my mind.

SO........ You say Deal or not. Well? Is it?
Do some ground work, come back and let us know.

Knowledge is Power
- Pimpedoutgeese