Offer accepted on my first Subject to!!

[Jose Lopez]

I'm excited to share that the listing agent just contacted me to inform that the seller has accepted my offer to purchase their home subject to their. Unfortunately, this home was listed on the MLS, so I will have to pay the agent commission, and legal fees. However, I'm very excited to include this home into my portfolio, as it's in a trending location, with LOTS of investment and development in the area. I feel this home has tons of potential. It's a SFH 2/1 w/ carport, Brick house, concrete foundation, newer roof, and practically across the street from a community college. The property can cash flow in it's current state, and is move in ready. However, since I plan to hold this property, we will be rehabbing it before I refinance it under my LLC. I'm hoping to force enough equity to cover all of the closing and processing fees, and hopefully as much of the rehab as possible. Although, I'm not expecting to force enough equity to cover all of the rehab. But the remaining balance would still be less Out of Pocket than closing costs on a conventional mortgage.

Here are the numbers:

Purchase price:        $57K (remaining balance of loan)

Agent commission: $3400

Legal Fees:                 $600

Rehab Budget:          $8000

Expected ARV: $80000

Assuming I max out the rehab budget, this would put me around a LTV of 80% +/- at the time of refinance.

Any investors that are experienced with Subject to sales have any words of wisdom, past practices, lessons learned to share with me?  I would greatly appreciate input from any experienced investors.  

Thanks,

Jose