Newbie, working my first deal...

[Thomas M Sims]

Good evening BP, I'm working on scoring my first deal which I found on Zillow (FSBO). The seller owns the property outright and is asking $70K. Both units currently rented and allegedly both tenants want to stay. While talking to the owner he disclosed that he was currently liquidating all of his properties and also had 3 additional SF homes on one lot currently bringing in roughly $1600 total so, he just became a warm lead for me(hopefully).

With that in mind I was considering the option of a straight cash offer in hopes of getting first dibs on his other 3 properties when he is ready to sell those.  Once we close and things settle out I'll take out a mortgage to get all my cash out (6 months or so).

According to the county records he purchased the property for $37,500 in 2013. I'm considering a cash offer of between $50K-$58K plus closing cost (no agent commissions involved) which is right in line with the tax assessment. BRRR calculation link below...

I can basically do a Buy, Rent, Refi vice Buy, Rehab, Rent, Refi.  Any feedback on this would be greatly appreciated.  thanks, tommy

https://www.biggerpockets.com/...

  

[Thomas M Sims]

@Frankie Lesowske and @Joaquin Camarasa  Thanks for the feedback.  I have a growing list of questions for the seller in regards to his tenants.  I will also request his lease agreement to review and ultimately I will meet with the tenants.  Hopefully they are perfect and I won't have any problems....:) 

Thanks again....