I had scheduled today as a snowboarding day. Unfortunately, the weather did no cooperate. I shifted to Plan B which was to work on the taxes for my real estate businesses. In addition, I am really on the hunt for a new rental property. My realtor brought me a bunch of properties to evaluate. Several of them were good possibilities. We rapidly narrowed the list down to one property - a mobile home on a relatively small lot. The thing that is attractive about this property is that is has a problem, a potentially serious problem. The problem is that there is no title for the mobile home! While that could be a serious problem, it could also make this a very good deal for me. After talking to the realtor representing the seller, I discovered that the seller is having a great deal of trouble selling the property because of the title issue. The seller is asking $27,000 for the property, but the realtor told me that he thought the property could be bought for $20,000. This is basically the value of the land!
Tomorrow, I am going to look at the property. If it looks good, I will probably make an all cash offer for $15,000 to $18,000, depending on the condition of mobile home. I should be able to rent the property for $500 per month.
You might recall from my blog of last week that I made an offer on a 4 bedroom, 2 bath REO. We received a counter-offer from the bank today. That counter-offer was for $43,000! While this isn't a bad price, it is far more than I would pay for the property in today's market. I believe that there is a huge number of foreclosures coming in the near future and I am only buying at a huge discount. I had offered $21,000 for the property and I am still planning to attend the auction next Monday. Maybe I can even get the property cheaper at the auction. I'll let you know what happens.
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