Review of offer for a Duplex in Arlington,TX: What would you have done

[Dominic G.]

Since I'm not an experienced investor to provide indepth articles about real estate investing, IMO until I close my first deal, I figure I post opportunities that I come across as a way to contribute and create conversation about different techniques and what could have been done better.

[u][b]Latest Opportunity:
Property Profile:

[/b]Duplex Property/ Built 2002/

Rents: Unit 1: 1050 Unit 2: 1045

Reason for responding to marketing letter: Interested in selling property due financial constraints, poor property management, plus owner can not refi property due to other properties.

After running a few financial scenarios and looking at the current market rent , I offerred $151,750 for the property. I told her that a property two houses down with the same property characteristics was renting for $1025 and as she stated that one of her tenant's lease was up in July.

The owner refused the offer because her mortgage balance was around 150K. Turns out that she had gotten a mortgage at 7% when she bought the property.

The property is worth around 180K but she stated that her broker told her that it is worth 197K and that he could get a group of investors he knows to pay full market value. However it has been weeks since she has heard from this broker.

She didnt want to carry any paper b/c she was already doing this on homes she owner fiananced out, plus due certain circumstances she needed about 50K to 75K to settle previous debt.

I thought about a subject to offer to which I take over the payments but the monthly payment reduced the cash flow signifcantly based on my projections hence why she told me it doesnt cash flow properly.

Another consideration would be to assume her loan and refi, but after talking to couple of mortgage broker, they stated it would be difficult to do even though my credit was decent but my assets were lacking to get that approved.

All and all I, the owner and I ended on a good note and chatted about other things to which I told her that if there was something I could come up to purchase the property I would call her back and she was ok with that.

Based on these opportunities, is there anything I could have offerred her and has anyone dealt with a similar situation?

Feed back and advice is definitely welcomed as I'm working on two other opportunities in the DFW.