I was talking with a room mate the other day who told me he had a couple of rental properties. I perked up when he said this, but apparently he WANTS OUT. He said he owes more than they are worth and he's just breaking even with them. I was trying to tell him to raise the rent and such, but apparently he just didn't get a very good deal on them, he feels weighed down by them for some reason, even though I told him to hold onto them.
However would this be an opportunity for me somehow? If I were to work with him? Would it be worth trying to do a subject-to, or refi, or some of these other alternatives. I'm not trying to exploit him, but if I can get a good deal on these properties I would like to bounce it off him. Any advice?
I'm just starting out so I need opportunities like this to get started.
sure, get them below value with numbers that work and it's an opportunity, otherwise it's not. It's not an opportunity to bail him out of his bad decision.
Look at the deal closely. It may be a chance to get owner financing, but that alone is not a reason to get properties that are worth less than the mortgage. Investigate the numbers closely, then post them on the forums for good feedback. Run the numbers and tell us if it is a good deal.