Should I purchase and if so, which option would be best?

[Kate Porter]

Hi All!  I'm newer to Real Estate Investing and have a lead on a home in Western, Massachusetts.  The guy who owns it, owns it outright and is open to a cash offer for lower than what he was going to put it on the market for.  A realtor suggested he put it on for $149,500 but he hasn't signed anything with the realtor and is willing to go direct.  Depending on how it is - maybe offering $100K-$115K?

I'm waiting on photos of the inside which will probably make or break this deal but he claims it just needs some paint and clean up after his tenants moved out (he is planning on doing that this week). This town is an old industrial town that is slowly but surely being revitalized but it's in an area of Western, MA that many people go to vacation (the Berkshires). This town isn't anything special, nor is the neighborhood but I'm thinking if I can get him down from a cash perspective, it could be a good deal for an STR investment or a light fix and flip (I don't think it would work as a LTR if using a cash loan).

Now here's where I'm stuck -- trying to crunch numbers with the assumption that the house may need *some* work (maybe $5k-$10k) and if he wants cash, factoring in an HML - with the idea that I may use it as an STR or a light fix and flip? The BP calculators simply don't match this scenario for me to best analyze it - especially as a new investor.

Any insight/ideas would be greatly appreciated.  

Thanks!

[Chris Seveney]

Quote from @Kate Porter:

Hi All!  I'm newer to Real Estate Investing and have a lead on a home in Western, Massachusetts.  The guy who owns it, owns it outright and is open to a cash offer for lower than what he was going to put it on the market for.  A realtor suggested he put it on for $149,500 but he hasn't signed anything with the realtor and is willing to go direct.  Depending on how it is - maybe offering $100K-$115K?

I'm waiting on photos of the inside which will probably make or break this deal but he claims it just needs some paint and clean up after his tenants moved out (he is planning on doing that this week). This town is an old industrial town that is slowly but surely being revitalized but it's in an area of Western, MA that many people go to vacation (the Berkshires). This town isn't anything special, nor is the neighborhood but I'm thinking if I can get him down from a cash perspective, it could be a good deal for an STR investment or a light fix and flip (I don't think it would work as a LTR if using a cash loan).

Now here's where I'm stuck -- trying to crunch numbers with the assumption that the house may need *some* work (maybe $5k-$10k) and if he wants cash, factoring in an HML - with the idea that I may use it as an STR or a light fix and flip? The BP calculators simply don't match this scenario for me to best analyze it - especially as a new investor.

Any insight/ideas would be greatly appreciated.  

Thanks!

do not bother making an offer until you see the inside. drive to western mass and go look at the property. you will get crushed financially if you make an offer based on pictures without seeing it or having someone with experience and in your best interest looking at the property.