Owes 48K Rents for $1200 a month.

[Ben G.]

I'm new here, and I'm about to start my marketing efforts with @Jerry Pucket soon and I'm targeting absentee owners. I anticipate some leads will come through that aren't right for wholesaling, but may be right for some other exit strategies. I'm wondering if the following lead could be a deal even though I don't think I can wholesale it.

I'm out with an old college friend last night at the Ball State football game. He is in town visiting from San Diego and I ask him if he still owns the house that his father bought for him to live in while we were in undegrad at Ball State.

Without even knowing that I'm wanting to start investing in real estate he immediately asks me if I want to buy it. I ask him what he's looking to get out of it and he says hoping for $60,000 he tells me he owes $48,000. He says, "I'm in San Diego and I need to get rid of it, it's a pain in the *** and it's one huge headache. I don't have the time to manage it being so far away. I'm willing to get as creative as you want just so I can get rid of this headache."

Wouldn't you all say that sounds motivated?

Here is what I know about the house:

4br 1.5 bath 1300 sqft It's near Ball State campus within walking distance to classes

It's leased out to 4 students right now for $1200 total/month

He says he owes $48,000 and his Payment with taxes and insurance is $600

He says his dad estimates the repairs at $800, he estimates them at $3000, so I guess I'll be conservative and estimate them at $5,000.

Comparable homes in the area are listed and selling for $60,000 - $65,000

Doesn't look like there is enough room to wholesale this property, but with $1200 rent coming in this has to be a great rental property right? My question is what other questions should I ask him, and what strategy would you be looking to take this? Bear in mind that I don't have the cash to buy it outright. Thanks for the help everyone! Help me close my first deal!