import
August 29, 2006, 2:54pm
1
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
import
August 29, 2006, 2:54pm
2
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…
import
August 29, 2006, 3:11pm
3
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
import
September 2, 2006, 6:19am
4
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…
import
September 2, 2006, 6:16am
5
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…
import
August 29, 2006, 5:18pm
6
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.