How To Deal With This One? Pl. Help
Have come across a deal.
House is worth about 160k. The owner owes 108k and has repairs of about 5k. That puts it at 113k. The owner wants to move and would take 1/2 the equity and walk. According to him he wants about 23k.
According to me;
108k owed+5k repairs + 2k closing +
3months holding(720Mortgage at 7%)+300/month (Tax and ins) 1020*3=3060)
+2k (title ins, misc). Total=120k. So the equity is 40k and if the owner wants 20k, is it a good deal.
Any suggestions on exit strategy is very much appreciated.
Thanks in advance
Ask the sellers what they plan to do if they get the property back. Build their modivation to sell. Hopefully you can reach something even better.
As the deal stands, you only have a good deal if you plan to sell creatively. If you plan to hire a realtor and go for the flip, you're out of luck at that price.
GOOD LUCK