Need Help Analyzing This Deal

[Deadrick Colbert]

Hello BP, I need help analyzing this potential deal. A bird dog that called me with this lead today.

The house is a 3br 2ba ranch, sf is 1740, tax value is assessed at 150k. House is in a good subdivision in upstate South Carolina. Previously rented for $1100 per month. There are 3 comps recently sold in this neighborhood. They were for 169k, 189k, and 190k. This seller is asking for 194k. He told my bird dog that he is open to owner financing it since he owns it free and clear.

I've not that experienced with lease options or owner financing. For those of you that are, what are your thoughts on this deal? What questions should I ask the seller and what monthly rate should I try to get it financed for? Please feel free to ask any questions that you may have and I will do my best to answer them.

[Bill Jacobsen]

There is too little information to make an informed decision but it looks like the seller is willing to sell at about market value. There is no discount there.

You mentioned it had been a rental but is that market rent? If so, the property probably won't cash flow.

Seller financing does not make a non-deal a deal unless the interest rate is below market rates.

Last of all but most importantly, what are your plans for the property?

Good Luck.

Bill