All Forum Posts by: Errol Robateau

Hi all,

Thanks for the comments so far. Just some clarifications based on the comments made so far.

I am talking about a non-USA propertly (I live outside the united states). Rents in this country is routinely less than what one would pay in the USA.

The person I am buying the property from is a good friend of my wife and she needs to money quickly, and when she (seller) made the deal she believed the property was only $120-$130 based on an appraisal a few years ago, and was willing to let it go at the discount.

I got my own appraisal (last week), and it was actually $180k with a forced sale value of $150k. I spoke to someone at the bank and they seemed to indicate that based on current market values, my appraiser seems more accurate. Even if I sell it at $150k, I think I am still happy.

Hope that provides more background. Obviously because the rental income is so low, it makes no sense to keep it, so I want to flip it just because the value is so high. I saw the house myself and it looks really good.

My only concern is I don't know how long it will take to sell the house and in the mean time I wanted the rental income to pay the mortgage, so I am thinking of signing the tenants for a year, and when the end of the year is approaching then begin the market the property. Maybe it will even appreciate by then. I can pretty much break even with the rental income during the year (for mortgage, insurance, property tax).

Sorry I had a typo....should have said "The appraiser and myself....."

Hi all,

I just wanted someone else's opinion on the deal I am thinking of.

I found a rental income property that is selling for $100k. Current renatl income is $700 per month. I got an appraisal done and it is valued $180k. Boyhood the appraiser and myself looked at the house and it is in really good shape. No repairs needed at all. Reaaly nice.

I am thinking of putting in $50k cash and get mortgage of $60k for the balance + closing costs. Then sell it in a year for hopefully $180k which would be a nice profit.

Area is stable, growing, and I think it hold it's value. Person selling it needs the cash.

What do you think?