first deal plan, please analyze and rate the terms

[Rashid Khalil]

Deal analysis ; please provide your perspective thanks .

SFH ask price 400k

Comp 390-410 for similar

A class neighborhood

Roofstock rating 5 star

House in market 60 days

Situation : divorce

Price reduced a month ago from 420 to 400

Conventional mortgage 265 k refinanced in Oct 2020 at 3% for 30-year fixed

Balance mortgage 250 k

My offer 375 k

33% equity cash payout to seller = 125 k

66-% value = 250 k Mortgage transfer at sub to keep the low rate of 3%

Advantage: PRICE 5% below market and lower rate 

CONS: 

1. loan recall by lender 2. Large down payment

Rental value : 2800-3000

Would want to do STR for the rest of the year in 2023 to get the bonus depreciation against w2 income and then transfer to LTR

[Zach Scherschel]

Agreed, with @Scott E.. Also, aside from the situation of the owners, depending on the size of the bank right now, especially regional, they're highly unlikely to approve the transfer of a 3% mortgage in the current environment. 

Bank is far more likely to make a call on the loan and/or force a transfer to higher interest rate. 

Creative idea, potentially worth a shot still, worst that happens is a no and you withdraw the offer. Odds just aren't in your favor on this one.