The Numbers

[Scott T.]

Hello - I am a wantrepreneur...I want to become a real estate investor. How do I structure a deal with 2 mortgages and owner financing when I only want to carry / pay for the first mortgage? 

Comps say the place I am looking at is worth 175 max when sold. The current owner has 155K outstanding on his 1st mortgage & 15K on a second. He's willing to do owner financing but wants me to pickup both mortgages. I estimate 15K are still need in repairs & upgrades to make it sellable. New windows, a second full-bath, some electrical, paint, washer/dryer, cleaning and a few other items. The house is in a good but not great neighborhood. I'd like to offer 155K and have him carry the second. Otherwise, the deal doesn't add up. As it is I'd be happy to make 5K on this flip. My first flip. 

Suggestions? Thank you!