[quote=bearishgurl]
flu, I don’t understand why your “rental home” can’t be up and running and producing income within 60 days of purchasing it (assuming it needs SOME rehab upon purchase). I would be buying with an equity partner and likely paying cash, thus closing costs would be low. I’ve only approached some of these owners for a friend who was looking for investment properties a few years back and at that time, none of the owners wanted to sell. Things change as people move on up into their eighties and beyond. Sometimes it takes a few years for their kids to successfully talk them into selling non-productive rental properties, ESP if they will need the money for assisted living.
Most all of these properties need more work than lenders will approve (esp for the FHA 203b program). The work isn’t that expensive if you can do most of it yourself (no structural problems) and have ways of getting some work done cheaper. These owners aren’t likely to get multiple offers above what someone off the street would privately offer them considering they would be saving the sales commission. As a principal or co-buyer, I would obviously have to disclose to them that I am a licensee in my or “our” offer to purchase.
These properties are DEFINITELY not ready to compete with the vast majority of listed properties on the MLS today and their owners won’t undergo any cleanup/rehab. A few of them have the owners stuff stored in them.
There are a LOT of houses all over SD County that may have a “porch swing” in front and furniture inside. This is no way means anyone lives there … or has even lived there in the last decade. If the owner bought it for $5K to $32K, it has been paid off for decades and its property taxes are $368 year, WHO CARES? Just store your stuff and turn off the utilities. Get your grandson out there in the front yard once a month with the weedwacker (to appease city/county officials). You have a nearly “free” indefinite storage unit. DONE :=D.[/quote]
So let me ask you again. Are you actively doing this right now, and have you been successful purchasing a property like this recently, and it is producing income right now? If not, and if it’s this easy why aren’t you doing it versus blogging about it? That’s my question. Because it seems like it’s a no brainer, why wait? Is there an inventory available from these described “sellers” who are interested in selling within the short period of time. Or do we have to wait 10,15+ years for people to start croaking before this happens? And again, why wouldn’t these people be putting the home on the market where it could fetch top dollars?
