I met with the previous owner for lunch today. He is a fellow landlord who has many more properties with me.
After some small talk about tenants and landlording and all that jazz, he comes out and asks me what kind of payment I'm looking for?
Not the one to mention price first, I ask, "What are you thinking?
He said $750 a month. Wow, I was thinking $300-$400.
I told him that I'd really like to just sell it outright and be done with it.
I told him $7,500. I didn't have the brass to tell him 10 grand.
He said that he can't get that right now, but he's going to try.
I then told him that I think we should have a few options to work towards.
I then asked him if he had any free and clear properties that I could lien on for the payments on this?
He said that he didn't have any free and clear properties.
Then we talked a little bit more and he told me that he'd really like to dump the property next door and get out from under it.
I asked him about the details.
He told me it is a 3 unit that has a mortgage for 70k on it.
He said the bank is Wells Fargo and sold the mortgage to some junk bank and they have started and stopped the foreclosure 3 times now because they cant find the right paperwork.
He told me he doesnt want the house that I have, but its current on the mortgage and rented for $600 a month and its not causing him stress. He said the bank on the house I bought knows about the tax sale and they dont even care when he's talked to them.
( Ocwen, no surprise there. )
He said the 3 unit is causing him stress due to it going into foreclosure and the bank had mentioning letting it go for $11,000
Then I got to thinking....
I said, "I tell you what, you get that bank to short sale that 3 unit to me for 11 grand and I'll give you this tax sale deed as part of that sale and we both get what we want."
He sat up in his chair and asked, "You think that's possible?"
I said, "Sure if we can get the bank to go for it."
I told him that I would get on this tomorrow and for him to still work on the other options.
So tomorrow I will be heading to the courthouse to dig up the info on this 3 unit and see if I can steal if for a song.
If that doesnt work, which I hope it does, I will sell it outright to him or take payments. He'd have to give me 4k down and I'd take payments on the profit, that way my $ in is returned.
4th option and last option if all else fails, I'll drop the bomb of taking the rent until the bank forecloses. I'd rather not go that route and focus on short selling that 3 unit. 11 grand is peanuts for an occupied 3 unit.