Help assessing an opportunity and how to move forward

[Kelli Bristol]

In in New Orleans and did a flip property, a duplex in an area that used to be pretty bad, but has gotten better. Apparently, the fact that we re-did the "problem" house on the block, made a tremendous change in the area and an impression on the owner of the duplex next neighbor. The owner of the duplex now has a very emotionally charged relationship with their property. They don't want it anymore and seem desperate to dump it... to the point that if I don't take the property (yes as in, they're ready to just give it to me - and have even offered to pay me to take it), they're just going to abandon it and let it go back to the bank.

Yes, I realize that this is a wonderful problem to have! People wanting to just give you their real estate. It's like a real estate investor come true but the deal is a bit thin... as one would expect under the circumstances.

Here are the numbers:

Value as is: $130,000 or so - ARV - $151,000

Balance of Mortgage: 127,000

Original appraised Value: 158,000 in 2008

Total monthly payments including PITI and MI- $1319.77 (MI Goes away in 2 more years)

Potential Rents: 1500- 1600 monthly - will be vacant at the end of May.

Needs some minor repairs - $5000 or less, but rentable as is. Could also use removal of vinyl siding and painting but that's always a gamble since we never know what we'll find under the vinyl.

So as you can see, it's not a great deal, but it's a free duplex with the financing (albeit not great) in place. I'm in the process of selling mine (under contract) next door for $151K.

Questions:

-Currently held in an LLC, could I just have them transfer the LLC to me and take it subject to? This may be a question for a title attorney.

-They're thinking of doing a Bond for Deed (which is a land contract in Louisiana) that involves what I believe is unnecessary closing costs to the tune of almost $2000. This gives them the most protection, but like I said, they're over it and ready to destroy their credit over the double anyway so what's the point?

-Simple "subject to" purchase into a new LLC?

What would you do? I'd love some perspective on this.