Posted by Lloyd Cook, Los Angeles on February 17, 2002 at 24:09:58:
One or two things could be found during your escrow when you sell that could cost you time and money making your slim deal a looser deal. If you can?t hold the property for 6 months and afford to fix this and that, don?t go for it. If you could take it subject to and rent for several years creating cash flow and good profit in future, then go for it (if you want to be a landlord). If not, pass.
Take this Subj-2 or pass? - Posted by Craig (IL)
Posted by Craig (IL) on February 16, 2002 at 14:25:35:
Century-old 2Br/1Ba w/ 1-car detached garage, remodeled inside over last 10 years including foundation work, new furnace, new roof, new electical. Sold FHA 3.5 yrs ago.
Owner already moved and the extra mortgage is hurting. Tried for 1.5 years to sell it and hasn’t been able. I dpn;t knwo his history of tryign to sell it. Currently teh owner is asking 80K, and admits he’ll take what he can–just wants out. Owes 72K, current PITA is $725.00. I’d take it subject-2 for amount owed plus current owner makes next three payments.
The problem is that it is only 2BR’s–the price is too high for buy and hold as a rental. It may take a while to exit. Older 2Br’s are common in area, but the size and age reduces the market condsiderably. I don’t believe I want to offer a l/o; I figure if I’m doing him a favor on a slim deal. . . . I’d exit in l/o for $79,900. I’ll get that but it could take a while.
If I had to make a couple of payements before I got a t/b, I could manage. Of course, that would cut into an already slim margin. Should I go for it or pass? What do any of you think?
Re: Take this Subj-2 or pass? - Posted by Brent_IL
Posted by Brent_IL on February 17, 2002 at 02:09:56:
I believe Lloyd is right. I’d try one last shot with the owner, and tell him that after detailed analysis, it has been determined that the financials are too weak to get him out of his mortgage. You would, analysis shows, be able to take over 52.71% of the monthly payment the first year, 61.03% the next, the third year you can cover 82.17%, and the entire payment from then on. He just has to send you the difference each month, and his problem is solved. Would he rather pay less than half a payment for a little while, or pay the whole 100 percent?