Taking A Sub-2 From Another Sub-2
I am considering taking over a fixer home subject -to, rehabing and lease/opt out.
property is already subject -to,, i have done a title search and courthouse research shows no liens, suits or actions on property , the title is in the new owners name and the note still in the original borrowers. It's ALL GOOD. Or is it?? Are there any other dangers I'm missing that can be a problem?? I have never taken a property sub-2 when it was already sub-2. The owner is a distant relative to the note holder and they pretty much let the property go to pot. They are currently on time with note payments but have had problems in the past.
FMV= 95k
BAL= 61k
rehab est= 8-10k
moving out owner= 1k
Some may disagree with me, but I try to put as little if any money into a sub2, usually only back taxes or missed payment etc. I my self would NEVER take a rehab as Sub2 that I plan to rehab myself. IMHO, if you want to rehab then get a hard money lender and go for it the right way. Doing Rehab on a sub2'd sub2, there is too much of a risk that I would not be able to make my money back and possibly have to spend more on vacancy.
However, My suggestion would be to take it sub2 and sell it as a fixer upper, maybe even Lease Option or CFD (other than TX) and let the future owners put the money into it.
But the numbers are there to be a faitly nice deal.
CR