The units were very small that was for sure, but if I could, manage in one, I figured a single person could as well. I figured I could make the place and the rent attractive enough. My mind was racing as I drove to the fire house. My number one plan was to get someone who had a better idea of the condition of structures to examine the duplex. I needed to know more or less what kind of repairs and how much money I was going to have in the Little duplex. I wanted to know that before I decided whether to buy it or not. I didn't expect that the bank wanted too much for the post WWII era structure, but still there was no way to know what the total cost would be until I took a comprehensive look at it.
"Harvey, did you get all the details on the duplex?" I asked it ten minutes after leaving the property. I had to return the keys anyway. I figured I might as well start getting some idea of the steps necessary to purchase the duplex if the numbers were right.
"Let me get the papers," Harvey said walking back inside to living area. I stayed in the truck bay. I really had no interest in letting him pin me down at that point. I just wanted the quick version of the deal with the bank.
He was back with a file folder five minutes later. "Sorry had to explain the captain. They are getting tough on doing outside work on duty. Too many guys are tied to their cell phones. They are not doing the firehouse chores as they should."
"I could wait till tomorrow," I suggested.
"No you are already here and you aren't the kind of guy to do paperwork this quick. For that we are going to have to meet somewhere else."
"Just give me the numbers and procedure in the abbreviated version, so I can be on my way and get the captain off your ass."
"Right, tax value on the building is 65k. You know that market value can be as much as 20% above tax value."
"So I'm told."
"Since this is a foreclosure it is sold for less than market value."
"I knew that as well."
"Because it is below market, the house is sold as is. There are no warrantees at all."
"So I need to have someone check it out and tell me how much more I'm going to be spending. I get taht part right now I want to know what the bank is asking?"
"The price they put on the house is 52.500. I don't think they will budge on it. Banks seldom negotiate on foreclosures."
"So if the repairs come in at twenty thousand, there would be no benefit to buying a foreclosure?"
"No, but they usually have it priced so that the repairs would still bring it in below market. Right now the market is crap for sales so I'm not sure the rules will apply."
"Can I get the money anywhere or do I have to finance with them?"
"They will give you incentives to finance with them but they will be happy to take the payout."
"Could you arrange a loan assumption on the property?"
"Are you going to live in one of the units or is it just investment property?"
"I'm going to live in it for a while at least.
"Then yoiu don't want to assume. The deal is much better for a home owner. There are lots of buyer incentives right now."
"Okay if I go the whole load, what will the payments and escrow run?"
"On a twenty year load the bite would probably be about six bucks a month. Maybe even a little less, depending on the financing."
"I'll stop by my bank and get a pre approval," I suggested.
"Go by the city worker's credit union while you still can."
"Good idea," I agreed.