California Short Sale

[Galin Oliver]

Hello,

I am new to this forum and rapidly trying to get started. I have found a seller here in California that says she is upside down on the home and coming out of pocket every month tho meet her mortgage commitment. It is rented and tenant pays $1700 a month. She says that the Condo is worth $190k. I have just looked up the comps for the property and it shows property valued at $260k. If the owner who is not behind on payments and wants to just get rid of the property, what would be the best strategy to get her out of the loan commitment and me getting the property as an investment? 

I could get a conventional loan and I believe the bank would only sale at the value of property which would be lower than the 2% return each month. But if I could some how get in this property for $170k then that would put me 2% and 50% rule could apply. The only expense that I see are the taxes and HOA. Tenant pays own utilities.

Any help appreciated. 

I have 40k for the deal. If that helps. 

Thank you in advance. 

Galin