Posted by dutch on September 02, 2006 at 08:43:01:
Well, you answered your own question. If the numbers don’t work, walk.
Personally, I think you CAN make this cash flow. But it means selling it Owner Carry and getting the cash flow from the interest spread.
Good luck.
Dutch
Analyze this deal for me??? - Posted by kevin
Posted by kevin on August 29, 2006 at 14:54:22:
Lady calls me today with house to sell.
She is 2 pmts behind, has some kind of sickness and out of work.
She said she wants to simply get rid of the house off her back and $0 money.
Details:
ARV: 130,000
Age: 15 yrs old home
Repairs: 2,000 (cosmetics)
Mortgage: 106,000 ( 998/mo PITI, fix rate)
Equity: 25k approx.
My first thought is to work out a short sale with the bank, what do you guys think ??
suggestions welcome…
Re: Analyze this deal for me??? - Posted by dutch
Posted by dutch on August 29, 2006 at 15:11:05:
Short sale is unlikly at only 2 months behind, and they are always iffy. Depends on her situation, income, etc.
I would do this deal Sub2, make up the 2 payments and the repairs $4000 total, L/O or Sell it Owner carry for 135,000, $5000 minimum down payment, at an interest rate of whatever the underlying note is plus 3 or 4%. Put a 1 to 3 year balloon or option time frame and collect the cash flow until then, then get the big check when they refi.
Good luck.
Dutch
okhomesavers.com
problems with what you suggest… - Posted by Kevin
Posted by Kevin on September 02, 2006 at 06:19:19:
You suggest making up 2 pmts + repairs. This will come to around $4,000 out of pocket.
Plus, I’m thinking its gonna take atleast 2 months to find a qualified tenant buyer.
So, cost is $6,000.
As for rent, I could probably only get $950-$1,000/mo for this home, making for almost no cash flow!
Is this still a good idea…
thank you… - Posted by kevin
Posted by kevin on September 02, 2006 at 06:16:01:
I will look into this sub2 you have described and see if I can make a profitable deal out of it…
Re: Analyze this deal for me??? - Posted by Luke
Posted by Luke on August 29, 2006 at 17:18:53:
That’s a solid plan.