First time Inverstor buying Subject-To

[Edwin D]

Hello Everyone!

I plan on buying a house “Subject-To†in Coppell, TX

GIVEN:
1. Loan Balance $162K
2.I nterest Rate: 7.5% (Flat 30 Year Term)
3. ARV, CMA Report $165K-190K
4. Built 1979
5.$1707/Month Payment (includes PITI + PMI) (money in Escrow)
6. Neighboring area houses for Lease ($1200-1500 a month)
7. Needs about $10K
a. Paint
b. Carpet
c. Some Electrical
d. Foundation
8. Behind 2 months’ rent (about $3,500 needed to get loan up to date)

Reasons why I would consider this deal
1 First investment deal
2. Want to learn
3. Be able to get the $8K tax credit (first time home buyer)
4. Get additional tax cut because of being in a higher tax bracket, due to my business

Reasons why I Don’t want to do this deal
1. Monthly payment to the lender is higher than the market value
2. About 3% equity in the house after repairs


Exit strategy will be to offer owner financing and to do a wrap-around loan

Not planning to make a lot of money on this transaction, wanting to get my feet wet and learn

Please provide any advice that you may have.

Thanks for your time.

Edwin D
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