“Subject To”

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Happy Easter!

“Subject To”

Harry Homeowner has a duplex that he absolutely wants out of. He is willing to do whatever he can to get out of the situation. Truly motivated.

Due diligence brings back the facts that he just bought it in late 2005. Bought it for 54K and claims to owe 50K as of today. He said the rental game is to slow for him and he wants out. The ARV is around 65K

Lets just say that the house is needs a little work (>10k) and it has tenants in both sides of the duplex. His mortgage is 500 and the tenants are paying 400 a month. Lets just round it to about 200 monthly cash flow.

I personally was going to offer him a low amount like 12K -15K but I thought, what if he doesn’t take. . ..lets say this is a decent property in a decent “rental” neighborhood. . .What would my second option be? I thought, maybe a “subject to”. ..

I have never put together a Subject To deal and wouldn’t necessarily recognize one and wanted to ask the advice of the community about Subject To’s and their pluses and minuses… and would it apply in this situation?

I appreciate everything!

SB