Creative Ways to Solve Sellers Problem

[Bill F.]

Hello All and thanks for the help in advance!.

I'm looking to buy my first rental property in Jacksonville NC (outside of Camp Lejeune, a Marine Corps Base). I have a cash offer in on a 10 year old, 1069 sq Foot, 3/3 Townhome that needs more than a little work (Replacing the carpets and linoleum with laminate floors, sanding, minor patching, painting walls, and re-seeding a 500 sq foot back yard), but not a full rehab. Total repairs sit around $10,000.00 on the high side. The property has been on the market for over two years while simultaneously being rented, though it has no tenants now due to the last ones leaving it in poor condition. After I made the offer the seller's agent told us the property is part of an estate and has an $81,000 outstanding mortgage. Consequently, that's the lowest price the seller will accept. The numbers don't work at that price and neither does the market support it; they most I'd offer is $69,000.00 and cover closing costs. With repairs my conservative CoC sits at 6.5% at that price point.

I remember listening to BP Podcast, though I can't remember which one, where the guest talked about solving the seller's problem. Right now they I believe that have unintentionally limited their options; few owner occupants (mainly military members) want the hassle or have the cash to buy the property and repair it. The price point doesn't work for investment for the reason I've stated. Finally, to make the property rent ready again will require $2,000.00-3,000.00. I suggested to my agent that I'd be willing to work with the seller in a short sale, but beyond that I'm stumped. I know if have the option to walk away, but does anyone have any other ideas of how to solve the seller's problem while still acquiring the property for a fair price?