Buying a house locally that is not for sale/is a rental (Westland: appointed)

[cardwellave]

I nearly rented a house about a month ago. The landlord really grew to like me (she said she was very disappointed when she found out I wanted the house after she had rented it to someone else the same day) and said she wanted me in the house more than anyone. The house was leased starting this February for one year by another tenant. She told me next January she will ask the tenant if they want to renew and if not I am welcome to it.

I have realized I love this house and honestly I would do anything to get it. I am somewhat nervous that the tenant will want to renew and I really want this house. I feel also like it is a smarter time to buy a house than rent.

My question is, is there a good way to tell this woman/landlord that I would be interested in buying this house? She purchased it last year and planned to use it as her own house but decided to rent it instead. From public records I have determined it was purchased for $25,000 and she is currently renting it I believe for $650. I would be willing to offer her a pretty good purchase price for the house.

Is there a best way to do this? Should I set up a time to meet her, call her, email? Most of our correspondence has been via email. She is also a real estate agent so I think she is pretty real estate-minded.

I'm also wondering what people think the real estate market will look like a year from now. I'm thinking of offering her about $45,000-$50,000 for the property. She is an older woman (late 50s?) and if she bought the house for $25,000 at the current rate she is making about $7800 a year, minus taxes (about $3000)...that is $4800 a year, minus water as well, so around $7000 a year. At this rate it would take 3.5 to 4 years to make up what she paid for it. I think an offer of $45,000 would be tempting, right?

Just FYI it is a 2 bedroom house in Westland, MI. It features a fireplace and a large front porch, central air, built 1942.

[I_Want_Snow]

Ask her out for coffee or lunch and just tell her that you fell in love with the house and ask her if she would be willing to sell it. The worse thing that could happen is she would say no. Give her a base idea of how much you are willing to offer.

If she bought it for 25 and you offer her 45-50, she has doubled her money and she could take that money and go buy 2 more houses at 25 to rent out. Or she could bank 25 and buy another house at 25. Either way she would be making out good if she sold. Most people would be like, you paid 25 for it, I'll offer you 28 or 30. But you are offering double... You never know unless you ask.

If it were me, and you offered me double what I paid, I would sell in a heartbeat! With the times now, it's hard to double your money on any type of investment.

She may 'like' the house, but if she sees how much you 'love' the house she may be willing to sell. I would definitely try to do it in person. You really can't express your true feelings in an email or even over the phone. You get a true feel of a person's sincerity about something by talking with them and looking them in the eye.

Good luck!! Hope it works out for you!

[cardwellave]

Thanks for your ideas. Anyone else have any suggestions?