Subject to loan help...?

[Jack Shuttleworth]

I might have an opportunity to take on a subject to loan. Is this a good idea?

Im taking on a loan amount of $144,236. 28 years left on mortgage, 2.875% interest on the note ($956 payment).  I can get 1200 maybe more a month.  the property is worth roughly $190,000 (so instant equity). I have not done subject to before. 

any thoughts on this? Guidance with subject to?

THANKS !!!

[Marco Bario]

@Jack Shuttleworth 

After debt service, taxes, insurance, vacancy, turnovers, etc I could see the deal looking pretty thin. However you know the numbers and I don't.

Disclose heavily to your seller. The loan will remain on their credit report. There is risk of default which could have negative impact on their financial profile. They may have issues qualifying for another mortgage due to the existence of the current debt. Make sure they initial next to all of the disclosures. What you don't want is for them to "forget" what they agreed to and claim in several years they were taken advantage of.