Possible buy and hold

[John Lowry]

Good Morning,

First real time to test the waters here.  I am looking to make a buy hold purchase.  

3/1 in a rural setting with a tornado shelter in a suburb 15 minutes from downtown Tulsa, OK.  

Been on the market 447 Days and started out at 84,900.00.

Recently, within 77 days, relisted at 44,900.  Currently at 39,900.  It is a short sale and the owners still have control.  Remodeled just a couple of years ago.  

Condition - House is solid - Carpets need ripped out and tile put in to buy and hold - back porch/deck needs some attention.

About 4k in cleanup and repair costs.

Area rental numbers for similar houses:

3/2 - 700 about half mile away

2/1 - 625 about a half mile away

3/2 - 725 same distance

2/1 - 600 same distance

All currently rented so those numbers should be pretty accurate.  The only thing I did not get, didn't ask but should have, occupancy rates and tenant turnover averages.  Just didn't feel comfortable asking that question.  I don't know why, is this something folks ask the owners of rentals when they are looking to purchase in an area?

Average to low crime area.  Very private street/area.

Realtor, if they figure out how important communicating is.......another story......, is getting me comps.

I wanted to line this out for opinions here and suggestions in making an offer to the owners that will have to get bank approval.  I am thinking 30K would be a good starting point.

Thanks so much.

John  

[Keith Kaufman]

@John Lowry Irving to Oklahoma City is a good distance.  Six hours round trip gets to be old in a big hurry.  Are you planning on hiring a local Property Manager?  If so, that is the person that will have the best knowledge regarding occupancy rates and turnovers.  If you don't already have a PM, start your screening process for a PM now and make that one of the questions you ask.  Even if you don't end up with this particular property, having a PM in place before you acquire a property gives you a "boots on ground" team member that can eyeball a future acquisition from the standpoint of whether it will be a good property to manage or not.  I invest long distance and my Property Manager is the primary reason I can do so comfortably.