FREE HOUSE: but LTV is over 100%

[Isaac Da Silva]

Hello all, this is my first post on the forum, so I will try and keep it short and concise.

A homeowner is willing to offer her house in Lake Placid, Florida to me, without any cash in her pocket. She has a mortgage for 121k, and the ARV of the house is circa 133k. She essentially just wants me to take the house off her hands.

I’m going to visit the property today but I’m estimating repair values can be anywhere from 5k to 20k.

The mortgage is variable rate, and it is currently at 6.17%. She currently pays 750 a month on Principal, Interest, Taxes, and Insurance.

For those of you who don’t know lake placid; it is a very small town with a population of 2500 and very little growth.

Would a ‘subject to’ be possible in this case?

I’m willing to do anything that can be profitable with this property, whether that be renting it out, wholesaling, short sale, subject to, etc.

But for the life of me, I can’t figure out a good course of action. There’s so much going against this deal that I’ve come close to just saying that I wouldn’t be able to take it.

However, I can’t help but think that a savvy and creative investor might have an idea as to how to make it work.

If any of you seasoned investors are willing to share some insight to maybe what you would do were your in my case, that would be extremely enlightening and I would be very thankful.

Thanks, Isaac