My Misfortune Is Your Cashflow Rental Opportunity

Hi all,

In 2014 I purchased a 3-bedroom townhouse (half of a duplex) in Stanley, North Dakota.  No, I had never heard of Stanley before either, but it?s right in the middle of the Bakken oil boom.

If you?re not aware, this area of North Dakota is the largest continuous oil deposit the United States has ever seen.  It?s estimated they?ll be able to uncover 7.4 Billion barrels of oil and 6.7 Trillion cubic feet of natural gas from the region.

The laws of supply and demand were in full effect in 2014 as people streamed into the area resembling the early Gold Rush.  Without much supply of housing, I was having renters pay $3,000/month for the place (mostly oil industry workers). Read more about this oil boom here:http://www.thefiscaltimes.com/Articles/2013/06/06/11-Shocking-Facts-about-the-North-Dakota-Oil-Boom

Considering my monthly mortgage payment was only $1,200/month, that was a hefty profit each and every month.

Well, fast forward to 2016, and crude oil prices were way down.  Lots of oil folks pulled out of the region as I?ve heard that it doesn?t make financial sense to go after the oil here until crude prices are back over $100/barrel.

My life here in Irvine was getting really busy, and although I had someone managing the property, I left it vacant for too long.  There was an unfortunate plumbing leak which caused water damage to the interior.  I completely gutted the entire place (thank God for insurance) down to the studs and had every inch of the place rebuilt.  It is now in perfect condition and hasn?t been lived in since the remodel.

I?m about to sign a 1 year lease with a tenant paying $1,000/month.  This will at least make it almost a wash as we wait for oil prices to recover.

But here?s my misfortune: Earlier this year, my wife was diagnosed with breast cancer and has been battling that for the last 8 months.  Honestly, the LAST thing on my mind is this rental property in North Dakota.

I have it listed on the market for sale, but there haven?t been any bites yet.  I just want this place gone so I can focus on my family.

Are any of you either interested in an investment opportunity for yourself by buying this place, or could someone point me in the direction of a way I might be able to offload this?

I have no doubt this region will completely rebound and this place will be a great asset for someone willing to wait a bit, but right now, I just don?t want to deal with it.

Here?s the current listing:https://www.zillow.com/homes/314-Adeline-Dr,-Stanley,-ND-58784_rb/

I am completely willing to work with the price to make it a complete no-brainer for the right investor. 

Anybody?

Thanks.

Good luck man. Very sorry to hear about your wife. Wish her a speedy recovery.

You might want to try listing it on the Bigger Pockets marketplace.  This is where real estate investors go to sell their deals from around the country.  You would need to sign up for a premium membership to list the property here.
https://www.biggerpockets.com/forums/517-real-estate-marketplace?property_listings=true

I'm also sorry to hear about your wife.

Thanks so much guys!  It's definitely a tough journey I don't wish on anyone... 

Thanks also for the BiggerPockets.com hint.  I'd never heard of that site.  I'll post there.

Sorry to hear about your wife.  Im sure we all hope she does well.

If you are looking to off load this property quickly, you will need to look at the comps in the area.  There are homes on the same street that are priced much lower than yours.  For example look at link below:
https://www.realtor.com/realestateandhomes-detail/335-Adeline_Stanley_ND_58784_M81573-94702


I would bet that if you priced it better you would have no problems selling it.

Good luck to you.


What did you buy it for if you do not mind me asking?

Your first customers are the owners / renters of the other units in this building. Did you reach out to them? They may know its for sale. They may not know they can qualify to purchase.

The second customer is your tenant - They might even be able to assume your loan.

The third reach out is to the unions who have moved up there for the oil biz. They've got to know someone. Google AFLCIO or other unions and you may find someone in the know...

Fourth would be the VFW. Lots of vets can use their entitlement for a zero down purchase. 
[url]https://www.nd.gov/veterans/service-organizations/vfw[/url]


Is your loan an ARM? Then it might be assumable.

Other than an outright sale or a correctly assumed loan do not do a wraparound or anything exotic.

Find out from a local attorney what the "jingle mail" options are - assuming your loan is still the purchase loan and not a refinance. It may be the case that you have to let this one go, but only do it with the assistance of legal counsel.

My .02c

SGIP

IrvineLifer45,

Sorry to hear about your wife. There is nothing more important than your own emotional and physical health as well as your family. It is a tough spot to be in andI completely sympathize with your situation. I am an active member ( 8 years ) on Bigger Pockets and have many professional contacts, but unfortunately I do not know of anyone in North Dakota. I do like the advise by another TI member to go on Bigger Pockets and posting your story.  I am sure someone out there will be able to help you.

Sometimes it is not worth worrying about things you have no control over. Also, try not to Fear. F.E.A.R. stands for (False Evidence Appearing Real). What is Real is that your wife needs you and your support. Please try to focus your energies there. If you need some free advice what I would do in your situation, let me know.

Panda.

I hope everything works out and I wish you and your family the best.