New need your advice

[JayShah]

Hello everyone,


  I am completely new to REI and I am excited that I am going to checkout my first property next week. This is a foreclosure property owned by a local bank. It is a condominium 2 br / 1.5 bthrm , with an association fee of $170 and tax bill of ~$1100. If I were to get this property I would be renting it out. It is on the market for $18,000 and requires about $1K and it would be move in ready. It is in an Okay area where I would be able to get about $600 to $700 in rent back.


My question to you is what questions should I ask the broker when I go to check this property out? What do you think about this property?

Note: This is my very first post here so if I have broken any rules while posting forgive me and let me know.

[CalRehabber]

The first thing I would ask for is the disclosures..

Was it built on an Indian burial ground?

Is it in a flood zone that would require flood insurance, etc..

[JayShah]

Indian burial ground?

 Because that would make it hard to rent out?

[Bay Area Brian]

First thing to check out is if it even can be rented. Many places do not allow non-owner occupied units.

[JayShah]

Thank you CalRehabber and Bay Area Brian for your suggestions so far.


I looked a little more into the property and found out that it was "under contract" (not sure what that meant) looked into it and found out that there was a buyer that might be going through the final stages...even though I was a little bummed about it I called the bank to find out the status and they confirmed the same. However my agent got in touch with the other party's agent and said that they were unable to come up with the proper documentation and that the contract is null and void as far as he is concerned.

So that's that..I will be looking at this property tomorrow, if you have any more suggestions to give me I would appreciate it.

Thank you.

[justin0419]

Jay,
Under contract simply means that the seller and the buyer have come to an agreement in writing.  So if you go check out the property, the seller accepts your offer, and you put that agreement in writing (on a real estate contract form) - the property will then be under contract.

[asmayameen]

i have just want to ask you in which locality you got this deal. first check rent base of that area. u can ask from neighbors. they can assist you better!

[jolla]

Indian burial ground?

 Because that would make it hard to rent out?

I think CalRehabber was making a Poltergeist joke.

http://en.wikipedia.org/wiki/Poltergeist_(film)#Plot

[lasvegaswinner]

How much is Home Owners Association Dues?  Makes condo investing a deal killer

[asmayameen]

what about your deal? do you get it or not? i think its a good deal if you r able to win it!

[acoleman56]

The most important thing is to find out why the seller is selling find out the exact experience that lead to them selling the property and then take go pics of the property and walk thru to get a official estimate for repairs.

[Jessica123]

Hi,
I think you have to collect more information regarding the market value, location and the criminal history of the property.
Also, check out all the documentation and the agreement you will made. It must be very clear to you as well as the owner.