sub to, yes or no?

[Jana Gruttner]

i have a possible sub to deal. Seller owes 63,000. Comps out at 72,000. It is a tri-plex with all units rented. After PITI cash flow is $655. We are figuring 10% for property management. Which would bring a monthly cash flow of just over $500/month. Those of you who have done sub to, does this seem like a deal or should we walk away? We do have cash reserve in case of vacancy and would put money away until we had minimum of 6 months in a reserve. There are some repairs needed in near future, but thought we would repair when a there is a vacancy.

Thanks in advance for your advice.