Good deal or no?

[Paul Seidenzahl]

So I am already in process of buying a property with owner financing (made offer Friday) and another deal has kind of fallen on my lap. Friend of mine has a townhouse, bought in 2008 for 170k, owes 146k (houses around there are going for about 130-135ish), Payment including taxes and everything is $1046. He doesn't want to deal with the property anymore, had some bad tenants...etc. Said he was going to short sell it, and ruin his 800 credit. He just finished cleaning and repainting entire house and it is in good shape. He said it rents for $1350, double checked if that was correct and it is. (zillow has $1600 lol).

Anyway I am thinking about a subject to purchase, get some tenants in there and hold it....forever. Market is fairly stable in area currently. Decent little middle/working class area. The great thing is he obviously only has 21 years left on the loan and not 30, so I feel like that helps a lot. Also I am self employed and it is almost impossible for me to find reasonable conventional financing, almost limited to these type deals or owner financing. Which is few and far between in this area. That is a factor as well. So what do you think? 

[Jason V.]

Talk to your RE Attorney to see if there is a legal way to do a Sub2 (or master lease, or wrap, or whatever) in your state.

The $1,000+ number that "includes everything" would just be PITI, correct? Don't forget vacancy, maintenance, special assessment savings ( and/or Cap Ex.) I think if you add all that in, things get a little thin.

But If this is a no money down deal that has $300ish of monthly cashflow in a decent area, then I'm not sure what's not to like. Hardest thing might be finding a fair and legal way to get this off your friend's back and onto yours (but there must be some specific reason he wants out and doesn't want to list it. Keep digging.)

Good luck!