Loan Assumption Strategy

[Nick Bandiera]

Hello everyone,

I have a friend who recently purchased a house in the Columbus area but is now looking to sell his condo located 15 miles north of his new residence. Due to his job and having a newborn baby, he is not interested in renting out the property and is facing difficulties in selling it. I am considering the possibility of assuming his loan, especially since it currently carries a low-interest rate of 2.8%. The condo's mortgage is also quite affordable, and similar units in his building are renting for much higher prices, indicating a potential positive cash flow. However, I would be a long-distance investor and not the primary resident. Fortunately, I have a partner who could step in as the primary resident, and we are thinking of going 50/50 on this venture.

I am seeking advice on whether this would be a feasible and advisable option. Any guidance or suggestions would be greatly appreciated.

Thank you all for your input.

[Nick Bandiera]

Quote from @Remington Lyman:

Quote from @Nick Bandiera:

Hello everyone,

I have a friend who recently purchased a house in the Columbus area but is now looking to sell his condo located 15 miles north of his new residence. Due to his job and having a newborn baby, he is not interested in renting out the property and is facing difficulties in selling it. I am considering the possibility of assuming his loan, especially since it currently carries a low-interest rate of 2.8%. The condo's mortgage is also quite affordable, and similar units in his building are renting for much higher prices, indicating a potential positive cash flow. However, I would be a long-distance investor and not the primary resident. Fortunately, I have a partner who could step in as the primary resident, and we are thinking of going 50/50 on this venture.

I am seeking advice on whether this would be a feasible and advisable option. Any guidance or suggestions would be greatly appreciated.

Thank you all for your input.

 How much is the property? Seems like a lot of work for not that big of a deal. You will need to have an attorney step in to make sure everything is structured properly

 The property is going for $309,000. This isn't a big deal but it would be my first deal.