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Old 10-07-2009, 08:00 PM
 
3,027 posts, read 7,888,515 times
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Quote:
Originally Posted by rjrcm View Post
Since it will be a rental, you should consider a landlord insurance policy to cover the structure and liability. Renter can get a renters policy for their stuff.
I just mentioned my closing expenses,no you do not need insurance.Since it is cash not required,my purchase will remain vacant for some time hence you cannot get traditional covereage.The risk policy would have cost $1675,I will assume risk.
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Old 10-07-2009, 08:37 PM
 
Location: Barrington
63,919 posts, read 46,452,709 times
Reputation: 20674
Quote:
Originally Posted by 1stfamily View Post
me and my wife desided to invest in a rental property which is a townhouse, it sold for 65k in 2006 but since the foreclosure and all has hit atlanta so hard they are selling it for 11.5k. everything with the inspection checks out we offered 9000 which they countered with 11.5k, they refuse to go any lower then the asking price,
More than likely this place was financed at 100%+/-. They are offering to sell it to you for 82% off what is owed. What are you using to rationalize your offer? Have things in this particular area of Atlanta declined this much? Is this a gut job?

As an aside, such a transaction would result in a negative commission to both the listing and selling agents, in my area. By this, I mean, it will cost each of them more in fees than they will receive as commission.
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Old 10-07-2009, 08:41 PM
 
Location: Tempe, Arizona
4,511 posts, read 13,529,218 times
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Quote:
Originally Posted by DanBev View Post
I just mentioned my closing expenses,no you do not need insurance.Since it is cash not required,my purchase will remain vacant for some time hence you cannot get traditional covereage.The risk policy would have cost $1675,I will assume risk.
You are right, insurance not required, your choice. The OP indicated his will be a rental which is why I recommended coverage.
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Old 10-07-2009, 09:11 PM
 
Location: Colorado Springs, CO
1,570 posts, read 5,969,138 times
Reputation: 1405
I would sure think $500 would cover closing cost. Your title co. can give you an estimate.
On the matter of insurance - be sure you have a landlord's policy in place at closing. Also, check the gov. docs. of your HOA. I would assume the HOA would have a master policy - assuming the HOA is solvent. The HOA insurance may or may not cover the structure - you need to be clear and understand it. The HOA may require you to carry insurance. You will want to show the gov. docs to your insurance agent. Ask your insurance agent about "special assessment" insurance. This insurance rider will kick in for claims over the HOA's policy - it will cover wind / hail, and special assessments caused by huge claims that are over the master policy and force a special assessment. (such as a wind storm that destroys the roof - that's no longer an insurance freebe.) Understand the special assessment coverage does not cover option items that the HOA may impose an special assessment for - such as a new pool or replacement of driveways, etc.
Since you are paying cash there is no lender to "require" things - you are on your own. Be sure your bases are covered.
Congratulations.
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Old 10-07-2009, 09:47 PM
 
44 posts, read 124,716 times
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Quote:
Originally Posted by middle-aged mom View Post
More than likely this place was financed at 100%+/-. They are offering to sell it to you for 82% off what is owed. What are you using to rationalize your offer? Have things in this particular area of Atlanta declined this much? Is this a gut job?

As an aside, such a transaction would result in a negative commission to both the listing and selling agents, in my area. By this, I mean, it will cost each of them more in fees than they will receive as commission.
no the townhouse on a scale of 1-10 i would say its an 8 the carpet just needs to be cleaned and maybe a couple walls repainted but overall its an excellent shape, and yes some areas of atlanta have been hit hard by foreclosure (stone mountain/lithonia/decatur/etc) so alot of houses are going for way way below value. we finally just desided to accept their offer of 11.5 and 500 to cover closing costs we close on the 15th
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Old 10-07-2009, 09:54 PM
 
4,399 posts, read 10,630,114 times
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Quote:
Originally Posted by 1stfamily View Post
no the townhouse on a scale of 1-10 i would say its an 8 the carpet just needs to be cleaned and maybe a couple walls repainted but overall its an excellent shape, and yes some areas of atlanta have been hit hard by foreclosure (stone mountain/lithonia/decatur/etc) so alot of houses are going for way way below value. we finally just desided to accept their offer of 11.5 and 500 to cover closing costs we close on the 15th
I'm baffled you can buy a house/rental property for 11.5k. In my neck of the woods, you need at least 100k-150k to get anything thats habitable. i don't even think I've ever seen a listing for under 100k, in my area.
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Old 10-07-2009, 09:57 PM
 
44 posts, read 124,716 times
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Quote:
Originally Posted by jdm2008 View Post
I'm baffled you can buy a house/rental property for 11.5k. In my neck of the woods, you need at least 100k-150k to get anything thats habitable. i don't even think I've ever seen a listing for under 100k, in my area.
you must live in an area not hit hard by foreclosures georgia i believe leads the nation in this area unfortunately
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Old 10-07-2009, 10:09 PM
 
Location: Tempe, Arizona
4,511 posts, read 13,529,218 times
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Quote:
Originally Posted by 1stfamily View Post
you must live in an area not hit hard by foreclosures georgia i believe leads the nation in this area unfortunately
We are hard hit too in the Phoenix area, but still, $11.5K for anything is unheard of around here, especially if it only needs some cosmetic touchup. Lots of homes under $100K, but most need work. You can pick up some decent condos in the $50's-$60's in some areas.
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Old 10-07-2009, 10:19 PM
 
44 posts, read 124,716 times
Reputation: 34
Quote:
Originally Posted by rjrcm View Post
We are hard hit too in the Phoenix area, but still, $11.5K for anything is unheard of around here, especially if it only needs some cosmetic touchup. Lots of homes under $100K, but most need work. You can pick up some decent condos in the $50's-$60's in some areas.
yea i guess we got lucky
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Old 10-08-2009, 07:06 AM
 
Location: Orlando
8,274 posts, read 12,809,207 times
Reputation: 4136
Some people can't see a deal if it bites them in the wallet.... 65k for 11.5 .... are you kidding? that 1/2 of most cars. this means the cost of the money in a home perspective is not even $91 on a 15 yr note. add HOA's and taxes ( which should fall)and you have $300-400... what's the rent in the area? sounds like a great deal potentially....
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