Thoughts on a Sub 2 deal?

[Brian Bandas]

Hi folks! I'm fairly new to proactive, full-time real estate investing, but I love and I'm actively trying to replace my income and move into this as a business. Like most, I started out looking at wholesaling, although my long-term goal is to put together a strong rental portfolio.

Here is the deal I came across, and I could try and flip it, but I would really like to keep it as a rental! I would greatly appreciate your thoughts on it.

It is a sub 2 deal on a fantastic condo in downtown Nashville, on West End Ave. The location is absolutely incredible.

Retail comp: $380k

Total remaining on 2 mortgages: $347k

Rent: $3k

Cash flow: $1k

Sub 2 term: 3 yrs

Down pmt: $17k

Total purchase price: $163

I simply want to assess the risk of doing a sub 2, the risk of the bank calling the note. Furthermore, what would it look like to try and short the 2nd mortgage. Would that simply draw attention to the deal as far as the bank is concerned?

If I decide not to hold it myself, I can try and wholesale it, although that's a bit high for an investor prop here. Then again, $1k monthly on a property isn't bad. Is there any appeal there as a wholesale deal? I'm wanting to stick with this, be creative and try and create a deal for me or someone else.

Last note: no I do not have $347k if the bank calls. I wish I did. All in due time...