Is there a way to create a deal for this property?

[Sean Gover]

I have a lead on a 1348 sqft 3/2 home that has an ARV in the 110-115k area. Owner owes 82K. He has tenants that will be moving out soon and doesn't want the house any longer. He says his current rent is 1k a month. Rentometer has that # at the median.

I am open to either flipping or renting property so all those options are available to me.

Assuming that to flip to rehab the house would need about 25k and to rent 10-15k is there any creative way to make this a profitable deal at a purchase price near 82K?

Sean

[Robert Smith]

Sandwich lease option and take the option fee for your time and paperwork to someone looking for a buy and hold and let them repair or flip. 

If he will sub 2 hold the note and rent it out as a lease option and take a smaller down, $2K, and market as a sweat equity property. You save yourself the money to put a tenant in and no leaky toilet and roof calls once they are in there. 

There can be a deal here but if you are looking at any deal use the MAO formula. ARV - cost to sale - repairs - profit - asking price = Max Allowable offer. Straight up without getting creative this one is a loser. You can only buy on cash, terms, or conditions, don't try to hope for the best and expect the best because you will get burned every time.