First Subto! Any advice is welcome!

[Sergio Correia]

Is this a good deal

2 family with a partial finished basement

6 bed two bath 2 car garage and attic space for storage(or another room?)

Roof will need to be repaired soon.

Would love to renovate

Owner owes 240k mortgage

Comps say house is with 300-325 (mls)

Seller wants 325 for house (on the market)

Monthly mortgage payment is 1600

Expenses: vacancy. CapEx etc 18% $720

Monthly income- 2800(1400 each)

(market rent closer to 2000)

Raise the rent to 1800 x2 = $3600monthly income

720(expenses)+1600(mortgage) = 2320 -3600(raised rent)

Cash flow $1280

Motivation-

-seller is tired of being a land lord and Wants to sell to downsize.

-Seller wants 85k (240k-325k)

Plan: if i offer the owner the equity of the house(tell him to get heloc or Refinance both will effect the monthly mortgage)

Cash offer: 85k (hard money) how will i pay this money back? Monthly will be high. Can I refi/heloc (with a power attorney signed by seller)remove the equity from the home to pay off lender?

If the mortgage is in there name won’t that effect the home buying options?

Not 100% sure On the plan ANY advice and constructive criticism is Welcome! Thanks