“Here’s a Recent Probate Deal!”

I know many of you are concerned about how the current economic conditions are affecting real estate investing so I would like to give you a summary of an email I got last week.

One of my subscribers, a lady named Rose, just closed on a Probate house in the Phoenix metro area. The house is a 2 bedroom, 2 bath, 1482 Sq. Ft single level ranch style home.

She sent me several pictures of inside and outside the house and it looks very, very nice. Rose told me she paid $73,000 but had to pay an additional $4,000 for repairs to the air conditioning system. Also some minor roof repair was needed.

Because the Phoenix real estate market has been in a free fall for the last year or so it’s hard to put a value on the property but in the past it had been appraised at $230,000 but we certainly know its not currently worth anywhere near that. But I do think we can say safely Rose definitely has a good deal.

She is going to hold on to the house until the market turns around so she is renting it out for now. The PITI (Principle, Interest, Taxes, Insurance) on the house is about $515 and she is renting for $895 so she has a nice positive cash flow of $380 per month.

There is no doubt in my mind that in 2, 3 or 4 years that this house will be worth considerably more than the $77,000 Rose has invested in the house and when she decides to sell, she’ll make a killing……I’d say a minimum of $50,000 profit.

In the mean time the renter is making her payments for her with a little left over for Rose to stick in a reserve fund.

Now she bought this house outright but I am going to give you a little tip.

The market is ripe for lease/options right now. Whenever sellers cannot sell properties, lease/options become a great tool for purchasers. This is especially effective for those of you with not much cash.

So there’s a very current example of the kinds of deals that are out there right now in the Probate market.

If you would like to get more information on Probate investing, please visit

http://BuyProbateProperty.com

Enjoy your week!

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