Offer for Motivated Seller

[Bill K.]

I could really use some good advice from the field of experience on this forum regarding how to continue with my offer(s) on hopefully my first official deal, since 1998.

I am in initial negotiations with the owner of an SFR who would like to sell it as he has recently had to relocate out of state for work. He does not want the burden of trying to continue with the upkeep of the property or having to hope he can find a decent renter.

The most recent comps for the neighborhood are at $140K. According to the seller, the only rehab related issues would be the need to paint (interior & exterior) and some landscaping. All of the appliances are new(er), the roof is a few years old, the kitchen is 'gorgeous', etc. He has no negatives and I can only go by what he says for the time being, as I will not be able to see the interior until next week when he gets back in town.

The numbers:
- Asking $100k
- During first phone call, he said he would "like" to get $95K
- Again, comps are $140K
- P/I = $502/mo
- Taxes = $3,000/yr
- HOA = $100/mo
- Rent averages between $1300 - 1600
- The home is a little over 2,000 sqft; 3/2/2; CBS

He also said that he missed 3 payments and is taking care of that next week...in order to avoid probate...?? He also claims to have approx $42K in equity. I have asked him to send me the payoff amount for the mortgage so I can confirm this.

Now, I have not made him an offer as of yet. I would like to at least be able to inspect the property first. My concern, if the property is as nice as he claims, is what would be the best offer(s) to make? Does this seem like a good deal for a Sub 2? Or minimal rehab and retail? Or...?

Also, being that I am still a newbie, I may try to assign the deal to someone else. I would just like to have the original deal be worth something to another investor.

Thank you for any suggestions or comments.