possible sub2...but it's my first with no courses - Posted by mark (AR)

Posted by Tim (CT) on June 14, 2002 at 16:43:38:

Can you handle any payments if the place doesn’t rent out? How would you pay for repairs or any other unforseen situations? If you get FMV rent, you’re just under what you owe. Negative or breakeven cash flow is O.K. as long as you’re getting alot of equity out of the home. $2500 in equity doesn’t leave much room for error. And, if the property isn’t appreciating at a high rate, what are you gaining?

Even when acquiring a property ‘subject to existing mortgage’ you need to make sure it’s a good property. I think this is too skinny.

Also, I’m in the midst of doing my first subject to deal. Trust me. Buy a course. If you think education (or, more acurately stated, a course in RE) is expensive, try ignorance. If you don’t do something correctly in any kind of RE transaction, it could costs you thousands. Educate yourself first, then look for the deals. At that point, you’ll have a better idea of what’s good and what isn’t.

That’s just my $.02.

possible sub2…but it’s my first with no courses - Posted by mark (AR)

Posted by mark (AR) on June 14, 2002 at 15:57:28:

A home owner who has made an offer subject to selling her house is two weeks away from loosing her potential new home.

She answered my ad and this is the situation…

3/2 house excellent condition(six years old)
value of house is 78000 she owes 76500 with payment of
714 piti houses renting in area at $700

From reading the boards I have picked up on a few things

  1. I need a limited power of attorney
  2. " " " letter to the insurance co
  3. " " " " to the mortgage co
  4. signed sales & purchase agreement

I there any other questions i need answered or any advice that you guys & gals can give…thanks