verbatim 1 Report post Posted February 10, 2009 deal 1: owner will sell for 86k [loan balance] comps at 130/140k needs 4k in repairs for rotten wood around window sills.- note is 1k/month. It has been empty for one year and note is current. He says they are moving out of state as well but later made contradictory statements. I basically believe he doesnt want to put the time into repairs & listing it. 86/135=63.7% ltv -------------------------deal 2: duplex - owner will sell for 200k [loan balance] comps at 245k - needs no repairs - note is 1800/month - tenant is paying 1k per month and owner boyfriend pays $800. The current tenants lease is up in June. Owner will sell to me now and rent until they relocate out of state in June. She says her side will rent for 1250 so should i rent it to her for 1k for a $200 profit or the full $1250 until June? She is thinking about not paying any more notes for the next 6 months and using that money elsewhere if she doesnt find a buyer. 200/245=81.63% ltv -------------------------I was thinking sub2 entry method as both owners may dissapear. Exit for the 1st can be cfd w/10% down, l/o with 3% down [but may still need repairs so tenant can qualify for loan] or i can fix & sell myself. Exit for 2nd can be to rent both sides and keep the $300 or $400 cashflow and keep my fingers crossed that both tenants do not become additions to the daily growing list of unemployed individuals in this country. I dont really want to be a landlord though which is why this is not really an attractive option for me unless someone can show me the benifit. Since there is a strong chance that i have missed something regarding the best way to get in and out of these deals i would love to know what other investors would do... Thanks Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 11, 2009 Where are these properties located?What will Deal 1 rent for? Why has it been vacant for one year? Deal 2 owner concerns me. If she is willing to walk away from her mortgage, what makes you think she won't consider stiffing you for the rent if you lease to her? Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted February 11, 2009 Forget sub2 in deal 2. No equity. Deal 1 looks good. Need to get some answers. Now if you do decide just take an option until you get a tenants or buyers for a sub2 contract if you want to flip it. Share this post Link to post Share on other sites
verbatim 1 Report post Posted February 11, 2009 These deals are in TN. Deal 1 will rent for 1400/1500 per month. It has been empty for a year because the owner got married and moved in with her new husband 1 year ago. Deal 2: You are correct Mike, she could stiff me. She gives the impression that she just wants to relocate out of state because her boyfriend was mugged last weekend and she was mugged 1 year ago. I have learned not to have sympathy for sob stories because if they think you're their friend the accidentally miss payments on purpose and expect sympathy. the home is in a desired part of town and will rent VERY easily. Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted February 11, 2009 Now taking #2 sub2 on an option may not be a bad deal is terms were good. I would lock it up for 90 days and shop it around. No QualifyNo Credit CheckTake Over PaymentsWorth 245K Must sell 210K Just an idea. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 11, 2009 Regarding Deal 1, has the owner hinted at what they are willing to do besides a traditional cash out? Are they open to a long term lease purchase, for example? I can't imagine why not if they've been so lazy as to not bother renting the place out. Anyway, if they are open to this, locking up the $86K purchase price for three years or more, at $1K/mo, is a no brainer. Share this post Link to post Share on other sites
