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Updated over 10 years ago on . Most recent reply
Should I run or should I pursue this subject-to deal?
Hello all, I have a dilemma. I spoke with a motivated seller recently about purchasing their home. She inherited it 10 years ago, took out a second mortgage and a heloc. she cant make the payments due to her husbands health and cant work. time is up on the heloc with a 16k balance due now (cant be extended due to delinquent taxes), 34k balance on the 2nd motgage, 5k owed on 3 years back taxes. She wants 60k to clear her debt and put a few grand in her pocket. they also want to stay in the home and rent it back for 6 years until she retires. the house needs a bath and kitchen remodel but that could wait until they leave. The central a/c unit is the next thing that needs to be replaced (25 years old) arv is around 115-120k. rent 850-900. one part says to try and make it happen and help these folks with their problem one part says back off..can a sub 2 arrangement be worked out with this? thanks for reading this far..I know its long
Most Popular Reply

It is natural to want to help someone in that situation, but the reality is if they couldn't or didn't pay those bills, they won't or can't pay your rent either. Get the title situation checked out. Might be more they're not telling or don't know.
What is the selling price? If just 60, get a HMK and offer them a little more to get out and make it a clean sale. If that's just the cash down , then you need to provide more info.
Your rent is low vs ARV, so unless you can be all-in after rehab at 80 or so, you will have a hard time making much money.
Whatever you do, I would not recommend to buy it from them and leave them in there.