Subject To followed by a refinance?

[Jon Sheffield]

Very Simple question and I may have a better answer later in the forums, has anyone completed a subject to deal and the refinanced shortly after? If so what are the negatives and positives when refinancing?

The reason I am asking is that I am considering purchasing my parents home through a subject to to reduce cost and better interest rate. Then refinance in the hopes of getting HELOC to rehab and sell. If your a numbers person the amount left on the loan is about 280k current value is about 430k realistically what an investor would buy it for probally less than that. Current homes selling between 700-800k although 660-730k is realistic. Rehab cost I will say is between 150-200k, there are some structural issues that need to be resolved. I don't claim to have the most accurate numbers, i'm just trying to paint a picture in your mind. What I really want to know is who has done a subject to and if you have, have you refinanced to pull money out of the house?

And just in case a question comes as to why not just have my parents refi and get a HELOC they don't want the house and definitely don't want to deal with a rehab and I'm trying to show them the value of the home instead of selling low.

Oh if anyone else has a better strategy please by all means slap the knowledge down