Posted: Mon Oct 20, 2008 11:09 am Post subject: 2 houses need advice
We have completely paid for house in Aztec NM, Moblie home on 1/2 acre, 2 1/2 car car port attached, 4 sheds all with power going to them, one was made into a shop. All fenced, many fruit trees, irrgation rights.
165,000 we lived there just 9 months.
We moved back to CO because the medical was bad in the area.
Now we have a forcloser that we bought. Took out 140,000 loan and paid 25,000 down.
Being a city person. I never did understand this country laid back way of dealing with business. But I placed it on the market for sale last spring and the agent showed it just once in 4 months. the agent never called to say what was happening. I pulled it off the market. Was going to rent it. Found a person wanting to do owner will carry.
At this point 3 months living in the house. We still have no contract. This person I am finding is a poor risk to enter a 16 yr no interest, 800.00 a month payments.
I'm wanting to back out. Because of learning the risk of seller doing a owner will carry type of deals. Most of them don't work. Dealing with a person who don't want to be penalized for the mail being late with their payment. (many of us use this same mail system)
Trouble making the payment because the payment is due the same day as they get paid. They are willing to send a check, I just can't cash it till after their pay day. 16 years of this. I won't hold up.
I flat out don't want this becoming a rental. I have cleaned up to many rentals. These people destory homes. Is renting really worth the money? For when you go to sell it as a dump.
How can I cash out the house? Let the happenings of it become someone else. Just allow me to get enough to knock the interest down on the house we are now paying for? What is the smartest way in dealing with this.
We was in a medical crunch at the time of this. Was not watching the real estate market to know what was happening.
I just know the house can't sit empty. People have to be in there in order to keep afforedable insurance on it. I'm not a bank, into financing, investment dealings was not in my goal in life. Yet this is the perfect set up to start.
We can maintain this house without a crunch. Just not sure what is the best way in dealing in this matter. I have little tolerance for people and their money problems. I would be the pits as a landlord. 400 miles away and having people take care of the house. Letting the weeds get 7 ft tall over the summer. Any ideals would be welcomed.
Before I fold on this owner will carry deal, and hand over to a property manager. May anger the person and move into new bigger problems. I'm not going to do 16 yrs of this each month.
Either sale or rent it out? I agree being a landlord is not for everyone but what else will you do let it sit vacant? Like you said vandals will destroy it as well - at least as a rental it will provide some income. If you get lucky and really do your home work on the people you are renting to you can do ok - Why not offer a lease option on it?
Brian _________________ Licensed Broker 50 states http://www.aimwithfocus.com
Need quick advise email or PM Glad to help
I agree with Brian, your best bet is to do a lease purchase. If you want to owner finance, fine, but in my opinion, it doesn't make good business sense to enter into a 16 year agreement with no interest. Where do you win in that?
A lease purchase is a better option, usually, because you command a certain down pymt up front and then give the buyer 1-5 years to get the property refinanced into their name. If they back out, you have their security deposit to help bring the property back into shape to lease or sell.
Also, regarding the rent pymt, on a $165k property, you should be able to command more like $1200/month...but all areas are different and all properties are different, and the best way to figure out a marketable rent is to look in the for rent or for lease section of your paper and figure out what like properties are charging in your area. Another way is to drive around in your area and call the number on "for rent" signs to find out what they are renting for. You should also be able to get this info from a mgmt co or a realtor.
Bottom line, is a pymt on this amt is going to be approx $1300, so if they can't afford that for rent, they can't affornd to buy the property. Also, you should be sure that the candidate is pre-qualified so that you know they will eventually be able to close the deal.
bgina77
