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. What you really should do is hire your own real estate agent to act as your "buyers agent". There should be no fee for this but sometimes there is. If so you can arrange for the agent to get the fee from the seller. Once you have the agent, have him perform a comparative market analysis for the aforementioned property.This will tell if the price is right or not. You need to take into account taxes and homeowners insurance for the property as well toward your monthly expenses. If after you have your mortgage payment, including taxes and insurance, figured out and you still have a positive cash flow at the end of the month and the market analysis is within a fair range then I say go for it!
2. Are all the carrying costs only 543.33 a month? What I do before putting an offer in on a building that I have inspected is to have a professional home inspector give me a report. This way I can determine exactly what the building needs . I have major concerns with the tenant renovating the building as what are his/her qualifications? They could do an absolute lousy job - have no permits or inspections and cause the building to burn down - me - I would NOT permit it. Decorating a unit is one thing - renovations another I would also put in an offer - so I think it strange that the broker is already dropping the price. Why? These are my thoughts Gerbear