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Updated over 1 year ago on .

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4
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0
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Ritesh Jhawar
0
Votes |
4
Posts

Sub to: Is there any merit to this deal?

Ritesh Jhawar
Posted
Expected Price (A) $ 165,000
Mortgage Balance (B) $ 111,000
Mortgage Arrears $ 17,000
Solar Cost $ 25,000
Closing approx $ 2,000
Realtor fees $ 5,000
Total Seller Costs $ 160,000
Seller take home $ 5,000
Rehab costs approx
HVAC $ 4,000
Foundation $ 6,000
Paint $ 3,000
Total Rehab (C) $ 13,000
Total Investor commitment (A) + (C) $ 178,000
Total Investor cash (A) + (B) $ 54,000
Market Rent $ 1,600
11 month rent $ 17,600
Mortgage PITI Payment $ 1,250




is there is a way to make money in this deal? what if I help the owner get current on the mortgage by paying the $17K for an option to buy and get into a rent to buy contract at the PITI number so that the solar doesn't have to be paid off. Then escrow the rent and have it pay the mortgage PITI. That way I can have a cash flow of $400 from which the solar is paid. Am I over engineering this? or is there any merit to this?