Came across a potential deal at the office

[Nathan E.]

I overheard a coworker speaking with a tenant. She was complaining about managing the property, the issues, etc, and expressed that she wants to sell.

Later in the afternoon, I approached her and mentioned that I was looking to buy. We got to talking and I found out that her motivation level is very high, and that she just wants out. She then produced the loan statement and mentioned that I could call the bank and ask about assuming the mortgage.

The loan balance is 140K at 3.75% interest. The house has a deadbeat tenant with a lease until May at 1200/month. Nothing sounded that spectacular until I looked up the address. The house sits on a small spring fed lake and is 1500 sf 3/1.5. She’s put a lot of work and money into the place (new septic, flooring, kitchen and bath updates, new plumbing, HVAC, and exterior paint.) Houses in the area are selling for around 110-120/sf non waterfront, so I think there would be some equity.

I am looking for some advice on how to approach the transaction. Thank you in advance.