After talking to several investors, the consensus for what I needed to do next was overwhelmingly in favor of call the seller. I tried doing just that, however, all I got was a dialing tone over and over. I'll try again tonight.
In the meantime, I was able to run some comps on the property. From the data I was able to retrieve, it appears the FMV of the property is ~$105k. I haven't seen the inside of the house in detail, but judging from what the owner's sister told me, there should be no major rehab work - only minor touch-ups here-n-there to get it to a sellable state (mainly curb appeal, from what I've seen).
The problem lies in the fact that the financials will be tight with this one, especially if the seller won't budge on price. The list price is $96k, and I figure at worse, she has paid the notes down to only $89k - again, at worse (this is why I need to talk to the owner). So going with a worse-case purchase of $90k and a resell of $105k, minus closing, repairs and holding costs, I would probably make only a couple $1,000 at best for all my work. Not bad, but definately not good. I'm really considering flipping this to another investor with more experience with tight financials like this. I could earn $250-$750 for the info and be done with it. Of course the little voice in my head keeps saying what if? What if I could buy it for $90k or less, fix it up, and L/O it myself. It would definately be a lot more work, but the profit margin would definately be better.
First things first, though. I must talk to the owner to find out her motivation level and her walk away price. If I can get it below $85k, I would definately consider signing the P&S agreement right away, and consider all options afterward. The main things I am fearing with this deal are:
1. Its my first deal, and probability says it shouldn't be workable.
2. Its my first deal, and I'm getting 'analysis paralysis'.
Now I see why FSBO's are tough to do, but good to learn from. I have definately gotten more experience in the last 4 days than reading books on the subject the last 4 months!
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Hey there.. Just wanted to drop a note and say thanks for linking to my blog. Sounds like you're doing what you should and are learning lots! Congrats! (I also gave you some click throughs on your ads.)
Thanks Shaun. Since I put the AdSense up, I have never really paid any attention to it. I've tried putting the Google search bar up, but it failed the first time around. Never have tried messing with it since.
BTW, I read your blog every chance I can. You have a lot of real world advise not typically found anywhere else. I, and I'm sure others, really appreciate it!
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