Looking for help with assumable loan deal.

[Chris McDaniel]

Hello all! I have a potential deal and the numbers seem to work out ok, its not a screaming home run deal, but its a great buy and hold deal for the cash flow. So my question is this: the owner has an assumable FHA loan at 6.25%, would it be best for me to try and assume that loan? What are the advantages of assuming a loan? The loan balance around $75K and the seller just wants out of the loan, it needs about 15K in rehab. The cash flow will be around $600/month and its on the same street as one of my other rentals. I am refinancing some other rentals right now at 4.75%. So would it be better to pay cash for the house, rehab then refi or to try to assume the loan? If assuming the loan is the best way to go, how do i write up a contract for that? Thanks!