Taking over loan payments in Philadelphia, PA

[Harshil Kakadia]

Hello,

I recently came across a motivated seller who would like to basically get rid of her property. She has a condo with 1Bed/1 Bath and could be rented for $1000/month. Her mortgage payment is around $470 and HOA fees are $270. All I need to put down is moving cost for her and fix up cost. All together I am in this deal for $5000. The condo is worth somewhere around $35,000 and she owes $48,000. Don't ask me about it, her financial situation is a mess.

My question is, I can net $200/month out of this deal with $5000 down. So, how can I do this? Is there a lawyer out there who can help me out with this? This is my first creative deal and I would like to do more of these in the future.

Any comments, suggestions will be appreciated. 

Thanks,

Harshil

[Ethan Giller]

Good job being creative, but in my opinion, that deal is too skinny to make it worth your while. Especially since the title to the property isn't in your name and if she defaults on the agreement you don't have any equity to go after or likely any personal assets. The $200/month you are counting on will be eaten up by maintenance and management expenses even in the best case. Use your $5K to leverage into something you can BRRRR.