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Updated almost 8 years ago,
Three duplexes, same owner, possible subject to financing?
Hi, new guy here.
Investor owns three duplexes, each containing two 2/1 units renting at $500 per unit on a month-to-month. It's close to a university so there's good potential to get long-term renters in if the units are competitive with other student housing options (most students are paying $300-350 per bedroom in this market.)
Units were all purchased in 2004 at $95k each.
They're listed at $75k each now, and have been on the market for eight months. They're all in need of a good amount of finishing work at least, but the full extent of repairs are hard determine as there are no interior pictures listed.
The listing agent says he's looking to sell them together. Looking through tax records, the owner is local to the market, and owns two other properties around town.
As I mentioned, I'm new to this, but I have a feeling he may be looking to just get free of these units. It seems as though he bought high, and is looking to sell at a price point equal to would be owed on each principle per a 20% down, 30yr fixed amortization schedule.
We're supposed to meet next week at the properties to discuss. Any advice on how to approach this/questions to ask? I've never utilized "subject to" financing, but I do understand it in concept.