You don’t say where this is at or how much you could rent this for, or how much your payments would be.
There is not a deal here per say.
One possibility, If you have the sellers cooperation, you could try to short the second for about 1K and maybe get the first to discount some. The other alternative, would buy it and have seller bring cash to the closing. I understand your desire to help the seller but making their problem your problem is not smart either.
A friend of mine has approached me or rather begged me to take a house off her hands if I can. She married about 4 months ago and is making 2 house payments. The house is a nice 3 bed/ 2 bath in a nice area. The house requires no fix or cosmetic upgrades. The house has a first mort. of 65K and a second mort. of 11K. 76K total. I reviewed and also had a broker friend of mine pull current comps for the area and they are going at 75K to 80K. She was considering renting but doesnt want to be a landlord and doesnt feel she can sell with a realtor with no equity margin. She is going to allow me to do whatever I can to sell the property and make whatever I can on it if there is anything to be made. She just wants it gone. Anyone see a strategy here? I was thinking of maybe a sandwich lease and then re- lease option it with a descent option payment of course. What do you think? Any input would be greatly appreciated. Thanks all!!
Re: Is there a strategy here or not? - Posted by Rob Ricker
Posted by Rob Ricker on June 25, 2006 at 23:05:34:
If the monthly payments are well below market, there’s always a deal taking one ‘subject to’ …equity or not. The equity is not there for you on this one, so you must ask yourself, what’s the CASHFLOW?
You didn’t say how much the combined payments are. Assuming they’re reasonable then this is a classic payment takeover scenario. You can do sub2, land contract or lease/option. Resell on contract or lease/option for 2%+ higher interest then you are paying.
If the payments are too high for it to cash flow then you could do a cooperative assignment using a lease/option or land contract. That way you solve your friend’s problem and make a couple grand for yourself.