1st Sub2-- Should I Do?
Built:2001
Bed: 4
Bath: 2.5 (1x full, 3/4 ,1/2 ])
sq ft: 2000
Loan Balance: ~118K
Interest rate: 6-7/8%
Mortgage Payment: ~$945 (includes mortgage insurance, etc)
HOA Dues: $110/Month
The HOA include a shared t-1 and directTv. There is a new development of the same type of condos/townhouses being built currently that are selling for about the same price (120k).
Any thoughts?This would be a no money down deal. He just wants out. He has renters that are currently in the property, that talk of not renewing their lease.Plus he is spending 150 more a month than he is renting it for.
Thanks--
What is the FMV ?
122 or thereabouts. Because of newer construction going up its a very soft market.. hard to sell conventionally.
However on a cfd it might just work. Not sure if it is worth the risk or not.
Can the seller come up with some cash? I would need about $8K cash to make that deal happen. I always discount a sub2 by 10% for selling costs. Sellers who are motivated by time and not money can usually make this happen.
Brian
Hmm you could go for it, raise the rent to break even and if they move out...then lease option it. It kind of sucks for the renters, but maybe you could offer them some kind of lease to own program and up the rent.
--Doubt they could do the 8k.. that is what a realtor wanted them to give him in order to even consider listing the house.
--The renters are interested in buying.. but not this place.. they want a garage.. which this doesnt have
what is the rent market? How much is he currently getting? I gather from your post it is only about 900, but???
Are there many vacancies in the area?
It's simply not worth negative cash flow to get started. Success is too important, if you go to a bank in a year or so and they know you are willing to lose money, they might not be too inclined to lend to you.
let us know about the rent when you get a chance.
Rent is 900 ish .. and that is about what the market will bear. The rental market is soft because most people are buying not renting.
My only thought was to sell it on a cfd for 1050/mo with 5k down. HOA fees are in addition. So that way I could have 100 /mo cash flow.