Posted by eric-fl on January 12, 2003 at 08:39:18:
well, this sounds better. At this point, it sounds like your biggest issue will be filling it, and you’ll need to have a provision for what to do in case that takes a couple of months. Of course, that goes for any L/O or subject-to deal, and the necessity of having some cash or credit reserves for these types of deals has been espoused numerous times on this board. One thing you might want to consider is offering tenants fix-up for down payment on the l/o, in order to fill it quick and take care of the repairs, in one shot. Plus then you won’t really have to “split” much with the seller, LOL. It sounds like at this point you should write up a purchase agreement subject to your due diligence, and then order a title search.
Posted by tampasteph on January 09, 2003 at 19:58:10:
I went and spoke to the seller (see my post from earlier today), and he checked around on different insurance policies and was able to find one for $710. He was paying $1550. Also, his escrow was short $1700, and that was being added to his payments for the next year. He said he is willing to pay that off. This will bring the payments down to about $1000. He said he will also replace the carpet and tile in the entire house. He made the suggestion that I could buy the property sub2 from him, then sell on l/o, and split the deposit with him to help pay for repairs. Does this sound ok now? It was being rented for 1200, and I don’t think I would have a problem getting that once the house is fixed up. I asked if he could refi since the rate is 8.3%, but he said he’s not able to right now.