Good Deal? Your thoughts?

[Account Closed]

Property details: 4 units 2 bdrms each, each unit is being rented one resident has been there since 2002 others have been there at least 3 years or more. Newer roof, newer Windows, good curb appeal, good furnaces and water heaters. Seller is asking $40 but will accept a lower offer. Estimated appraisal between $75k and $95 Your thoughts on me moving forward with this deal. I plan to wholesale it as I'm not handy and could use money to fund my future investments. Thanks

[Bruce Scannell]

@Account Closed

It sounds like an interesting deal. Why is the seller to sell so cheap if the appraised value is high? Also, what are the units rented for? Where is it located? And what utilities is the landlord responsible for?

Thanks,

Bruce

[Matthew Vitlin]

It looks okay but the desire to sell for almost half what the max appraisal is leaves me worried.

The margin is such that it is worth looking at, but you need to get an inspection to make sure there is no glaring issue there.  It could just be that the seller is hard up and needs cash now, but selling for 1/2 the value seems a bit too desperate.

Be Safe

[Account Closed]

Thanks a lot for your responses Matthew Vitlin and Bruce Scannell

The seller and her husband are 74 and 75 and expressed they had no desire to continue to drive through the snow and care for the property. She mentioned that their health is declining and wanted to cash out some of their properties. I definitely will have it inspected myself as well. I'll get a chance to look at the property inside tomorrow. The units rent for $380/month. She covers water they all cover their own heating and electrical. She knows a she could charge more for the rent but since they are long term tenants chose to keep rent at a reasonable rate for them.

[Bruce Scannell]

@Account Closed

No problem. I'm assuming it's in Michigan, what city?

[Account Closed]

Yes it's in Flint where I'm located.

[Account Closed]

Bruce Scannell Yes it's in Flint where I'm located

[Josh Cunningham]

Sounds good so far. Sounds  low for rent and could probably get more. What are the city inspections like? A town near me (won't mention) is a son of a gun. They drive by to look for violations non-stop and for the occupancy or rental permit will search all non-permit pulled improvements and make you bring them to current code. I'm not opposed to doing things right, but I've purchased homes in that scenario and ended up with an additional $7,000 bill so look into it.

[Account Closed]

@Josh Cunningham

I've had limited experience dealing with inspectors, but I dont think they are that bad inmy area, at least not to that degree. I may be wrong though so I will get a  chance to see hopefully if I'm able to get the property under contract. Thanks for the tip I will be on the lookout for how the process turns out.