Sub-to offer seems too good to be true

[Trevor Gunderson]

 I'm relatively new. Purchased a small single family home in September of 2022. It didn't cash flow that well but it was in great shape and I had to deploy some 1031 money.
I was recently approached via text about selling it via sub-to. They asked for my mortgage numbers and rent. 

Purchase price: 145k (September of 22)

Rent 1125

Mortgage payment 795

Offer: Purchase price: 180k

Down payment of 10k
Seller assume my loan.

323.90/month to me. 
amortized over 25 years w/10 year balloon. 

Basically their payment would be exactly the cost of the mortgage and my cut. They wouldn’t have any money for maintenance, vacancy, or capex. 

How are they going to make any money on this deal? Am I missing something? 

I don’t think I acquired this property that much below market value. There is some room to raise rents this year when the lease is up but not by much.  It feels like a scam. Can anyone help me understand?

[Jay Hinrichs]

Quote from @Eliott Elias:

Quote from @Scott E.:

Sounds like a student of a sub-to guru who wants to just buy a door so he/she can brag to their friends about owning more doors.

In all seriousness, I would not entertain this deal. You're much better off holding it as a rental at your lower cost basis.

(also, they would not be assuming your loan in a sub-to transaction) 

This comment makes no sense, what about the proposal made it seem that way? 

I do agree with the comment you made on not taking the deal. Subto favors the buyer heavily. The way the buyer makes money by locking in a good interest rate, not having to qualify for a loan, and being little out of pocket while being able to capture appreciation. The seller merely does not have to make payments. 

 Actually in my mind it makes perfect sense I saw the last round of sub too disciples back in 08 to 2011 do the exact same thing.. very little if no equity no real money into the deal.. then could not make the payments and or just ripped the rents on purpose leaving seller totally fubared..   The seller in this instance would be crazy to entertain this.