Sometimes as an agent we find a cash cow..... A property that has significant extra value in price or a great rental value.... I found one such property.... It is 3 bedrooms, 1.5 bath 1152 sq ft. in Boise at a negotiated shortsale of $73000 plus closing costs. It is even possible that the owner would like to stay at the home and rent it. Whether you are looking for a home or an investment this is it. The value is $100,000 today if you turned around and sold it. I have been in it and wrote an offer on it in October. It is a nice home for the money. If you want to see it give me a call. This home is near the Boise Town Square. It's not my listing but it is a good one... I am even thinking of making an offer. I called my buyers but none of them are ready to move on it. To bad because it is a very nice home for the money.
I know how you feel, a good value is on the market and you think "why isn't this house sold already?". Good luck with that one.
The BPO came in a few thousand higher then the offer and the buyer walked.... Also the taxes are messed up in the listing so they appear higher then they are.
IMHO * allowing the former seller/homeowner to remain as a tenant is a mistake. They did not care enough about the property to organize their lives to pay the mortgage for a HOME THEY OWNED so they will not be able to pay the market rent.
Building in the seller as the tenant needs to be done in accordance with normal tenant screening including running credit on all would-be adult occupants.
The issues that caused the seller to not be able to pay their mortgage will not disappear with the short-sale
The house is in good shape and the problem arose through her taking out loans as she developed breast cancer... Thankfully her cancer is in remission. Her payments would be about $1500/month and her rent around $800 amonth.... I talked to her about a loan mod (she is now working and I am not her agent in October). She had tried on her own and was rebuffed.... She seems unwilling to try again. It is clear she loves the home and has taken very good care of it.
If the house was in poor shape or the story not compelling I would agree with you Wallace. It is not the best business decision but the home is clean and the property was well maintained in October. I have not seen the property since then since I do not habitually go to home that have a contract on them.. Beside the other agent annoyed me.
Debbie - if you get to sign Arm's length Agreement, it could state that the Seller can't be in the house even as a renter.
Anyway, the feeling is very familiar. As buyer's agent, I go through it all the time. I know about an excellent property, and I do not have anyone ready to buy
Debbie - it should sell soon. There is not enough equity for an investor to flip it, For an income property, it won't work either as the return of investment is 5%-6%. However, for retail buyer, it sounds like a great deal.
I also disagree with Wallace. I have a few transactions in which the owners became tenants. It all depends on the hardship and the numbers involved as to whether or not it will work out.
I get a cap rate of 12.8%.... That would work for me. and that is at a low rent.
Yeah, at 12%, now you are talking. I must have read the numbers wrong. Also, a personal thank you. It was your blog "I hate Wellsfargo short sale department" that got me hooked on Activerain and I actually got 3-4 clients because of my contribution on that blog.
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