All Forum Posts by: Phillip Rowe

Thanks for the reply’s...even though some comments were pretty harsh. I already wast feeling the deal was worth it but wanted some others thoughts. The owner has the means to pay off the rest of the mortgage and closing costs! As a friend of his I’m suggesting he remove the tenants, renovate and sell it as apposed to just letting the home go into foreclosure. Saves his credit, dignity and the 30k he’s going to lose if he does find a buyer at 110k! I think he’s ha big a hard time emotionally about it because this was his home. From my calculations you’d have to get this for under 90k to make it worth it.

Looking for my first rental and had a proposition from a friend trying to get rid of his. It’s a house he owned then turned it into a rental. Comps in the area are in the 175-185k range. He owes 130k but the house needs 40k in rehab if you sell it. He wants out and will sell it to me at 110k and 1/2 closing cost. The current renter has been there for 7 years and always pays his $1,000 in rent on time. Downfall is that they don’t take the best care of it or even tell them when things break/water leaks etc. subfloors in both baths have mold and rot and will need replacing. I’m a contractor so it’s not that the work bothers me. I was thinking about doing the deal and letting the tenant stay since the damage has been done! Maybe take a home warranty out though! If I buy it and the tenant moves out it may ruin this deal because I couldn’t get another tenant in there in the current condition and not sure there is room for a decent profit if I flip it. what are your thoughts?