Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 10 years ago on . Most recent reply

User Stats

115
Posts
68
Votes
Mike S.
  • Investor
  • Colonial Heights, VA
68
Votes |
115
Posts

Should I run or should I pursue this subject-to deal?

Mike S.
  • Investor
  • Colonial Heights, VA
Posted

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

User Stats

496
Posts
205
Votes
Doug McLeod
  • Investor
  • Cypress, TX
205
Votes |
496
Posts
Doug McLeod
  • Investor
  • Cypress, TX
Replied

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. 

  • Doug McLeod
  • Loading replies...