I'm looking at buying a real estate deal today in one southern metropolitan area, but it could very well be anywhere in the United States.
The deal is that, despite a robust annual rental income of nearly $130K, that after operating expenses and debt service, last year, the owner made $491.
Yes, you read that correctly. $491.
I hate to kick a guy when he's down, but that is incredible. And not in a good way.
To say that this is a prime example of property mis-management is an understatement.
Am I still thinking about buying it.
Of course!
After crunching the numbers, there is a lot of potential in this deal.
I also think that anyone that has over a million dollars of debt tied up in a deal that is throwing off a measly $491 is someone that will be willing to listen to some creative options for alleviating his burden.
After obtaining as much information as I could, I think that I would consider getting into this deal by asking the seller to allow me to assume his existing mortgage.
Going to be walking this property and meeting with the real estate agent this weekend, so I will let you know how it goes!
STAY TUNED for more WEEKLY UPDATES from an Entrepreneur Dad with a
Lovely Wife, 4 Kids (3 under 5 years old), and a passion and a dream of
running a successful home-based business!
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