RRZ.com Investments

Property Investment?

I was invited to an open house by a broker. It was more of an investment property. This is what the broker told me about the property: 1*** Unionport Road, $119K, CC $543.33, tenant paying $940 The tenant that lives in there is renovating the apartment himself. Does this sound like a scam or am I viewing this wrong? The broker advise me if I am interested, the property could be mine but the tenant included and she will lower the price to $114,000. What do you guys think?

Public Comments

1. If it sounds too good to be true, it probably is.
2. Unless you have a contractual "buyer's agent" relationship with the broker, the broker is legally and morally representing the seller's interests, not yours. That doesn't mean that the broker's not being honest. It merely means that his interests and yours are not identical. The real questions are (1) what's the property worth, and (2) what's a fair market rental value in the event the current tenant has to leave {not because he/she doesn't like you, but family emergencies DO arise. For both of these, ask the broker. For question 1, ask for comparative sales info. The broker can easily get data on what similar properties are going for. For question 2, ask the broker AND check the apartment section in the loocal newspaper. Prices for the same style property vary tremdously by location, amenities, etc. Also a factor is the ease with which an owner can sell. in most places, now is a buyers' market with so many properties on the market that saellers have to give on the asking price. If the broker you're working with is unable or unwilling to help you, consider that a message. Good luck.
3. Not enough info. How long on market, age of complex, location, sq ft, average going rent for comp rental in area? can' t make a choice on the info provided.
4. you will have to figure in taxes and insurance in that payment. if it can add up. if you can make money each month it sounds good, but see what the tenent is obligated to do and him doing the renovation sounds fishy why would he put money into a rental?