I called the first lead back with information on what she can do with the property still inside the house. There are several options available and a combination of those options. First, some companies buy household goods in bulk. I opted out searching for those just yet. They are usually smaller and I want to have a referral from someone I trust before I recommend anyone. Second, I informed her about estate auctions. Essentially a company will auction off your goods and take anywhere from 10-40% of the proceeds. Unfortunately, this is a small house and will likely not meet the minimum sale amount for some auction companies. They may need to bulk the items with another estate. Lastly, I found local charities including Goodwill and Salvation army. Most charities have a donation form for your taxes and will estimate the value of your goods for you. Make sure you get a receipt, otherwise you will not have any proof in the eyes of Uncle Sam.

She was very appreciative of me taking the time to look up the info. I think this will help build that trust factor Bill Guerra talks about (Thanks Scott for the prize to Bill’s ebook). I also used the opportunity to see if she will grant me access to the house. She is discussing it with her husband and mother. I actually think my neighbor has the key. We get along very well. Many summer chats while watering the lawn. I mentioned it will allow me to get a price before they come out. Everyone craves knowledge like this. I hope she is willing. Sadly, they will not be out here for another 2 months at least.

I thought about a few options for this house. In order to flip it, I will need to buy at 70k or less depending on fixup costs. The house will sell for 100-105. The exact same model minus the carport is currently under contract next door for 100k. I also thought about owner financing. They have owned this house for 47 years, and by my research it is free and clear. If they are willing, a 6% interest only loan plus taxes and insurance at a purchase price of 75k will be $500/mo. This house will rent as is for 932/mo under sec 8. I figure after other expenses of positive cashflow around $100/mo. Thats not bad. Plus I don’t need to qualify at a bank. The wife is in her 80′s and may be glad to get some monthly income. The last option will be to wholesale it to a landlord at around 85k. Of course I can always try and turn them over to a Realtor if they insist on putting it on the market. I think that generates a commission of 1-2% on my part. I mentioned several options to them, put reminded them that I want to do what is in their best interest.

Plenty of options on this house. If I can get this under contract with them, I will offer to buy their air fare out to Colorado to handle material goods inside the house.. In my best estimate that is likely what is holding them back from coming out here. Now I wait for the daughter to call me back with permission to enter the house. If she doesn’t call back, I will need to figure when I should call her without sounding pushy.

In other news: I was denied the refi on one of my rentals. $600 appraisal costs out the window. It would have also saved me $170/mo. The sad part, they offered for me to refi and I already hold the loan with them. I plan on calling their underwriting department with my inquiry. If I’m good enough for $920/mo to them, then why not $750/mo.

I did my taxes yesterday, having rentals is very nice, very nice indeed. My taxable income was reduced by nearly 14k. It caused me to break even this year. Very cool. Thats it for now.