A Friend who Wants Out...

[Scott Warhol]

Hi everyone at BP,

(this is a re-post from late last night with some updates)

I am extremely new to all of this so don't eat me alive. I have been involved with this forum for a solid week and I have been inspired by and learned more from all of you than any other source, so thank you all.

In a casual discussion with a friend today, who owns a duplex in a fairly prime location, he mentioned wanting to give it up. He is tired of being a landlord (they moved out of the city...) and he wished someone would take it off his hands.

Here is the little bit I know of the place (I have done some work for him there in the past):

1800 sq. feet. 4br 2 bath (2br 1 bath per upper and lower unit)

Purchased in '09 for $197,000

Current City Assessment at $169,000 (it needs some love. They haven't put anything into it.)

Both units are rented and current tenants bringing in $1,800/ month ($500/mo under average for the area)

All other similar duplexes (based on current recent sales and recent city assessments) in the neighborhood are assessed above $250,000.

Simply based on where this property is located I would like to take it off his hands. I have a meeting with him tomorrow to discuss numbers and to feel out what he wants out of some sort of deal.

I am looking for what sort of questions I should ask, numbers I need to find out about, strategies that I could work with to help him not lose (horribly) on a deal with me in which it seems like the house isn't worth what they paid for it...

Again, I'm very new to this and as of now my knowledge only extends so far as the many books I havd read and everything I have come across in these ever helpful forums. Maybe I'm looking at this deal all wrong and it is complete crap from the get-go! In which case, oh well. I can't learn if I don't try! I appreciate everyone's responses in advance! 

[Jason A.]

Before you get into any numbers, analysis, etc., I would recommend getting to the bottom of exactly why he wants out. Dig and then dig deeper. Consider carefully if you want to actually pay money to buy into his problems and whether or not you have the skills and resources to not become another "him".