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Updated about 8 years ago,

User Stats

55
Posts
27
Votes
Christopher Meis
  • Vendor
  • Norwood, MN
27
Votes |
55
Posts

How can I leverage this situation to my benefit?

Christopher Meis
  • Vendor
  • Norwood, MN
Posted

Hoping for some insight as I am new to investing.

My neighbor wants to sell, he owns it outright, he grew up in the property so he is emotionally invested. He currently lives with his wife in her house about 20 mins away, and has a "renter" staying at the property, the "renter" is a friend of his son and may or may not be paying rent. He told me that he would pay me a commission of $10k if I could sell the house for $150,000. Looking at comparables, Redfin has the home value at $133,600 and zillow has it at $172,800. The home is 1304 sq ft 4 bed 2 bath built in 1890. The basement is divided into a mother-in-law apartment with a private entrance. There is no garage and the driveway is only a single car wide so I do not think it would make a good duplex. It would probably be better to remodel slightly and install an interior staircase to take advantage of the finished basement as a single family home.

My initial thought was to get my neighbor to seller finance to me at a lower price, set it up for a single family and rent it out for a year, then wholesale the note to pay off the seller, possibly even splitting up the payments and keeping some for myself on the back end. Thoughts, comments or suggestions would be most welcome.