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Updated over 1 year ago on . Most recent reply
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Probate property / inherited
Hey BP family, I lost my mom and recently went through probate and received her house. Is there a way that I can keep the interest rate as is and sub-to it to my LLC? Interest rate currently (4.25%) owes 43k on the mortgage, monthly note including taxes and insurance $470. I am going to put it on travel nurse/corporate lease sites (fully furnished, all bills paid) since she lived right down the street (less than 5 miles) from hospitals, clinics, and business parks. The home built in 2010, currently valued at around $170k, and purchased for 70k on a special senior program with no money down. I do not know if I should pay it off, wait a year or two and do a cash out refi or do one now (at around 7.7%). Rent with travel nurse site could be $1800-2k per month (cash flow: around $1200k, CoC: 21%) if paid off. Regular rent around $1440 a month (cash flow: $360, CoC: 11.8%) with around $80k in pocket after refi for purchase of other properties (rise in expenses expected with insurance, utilities and such, numbers reflect it). Is sub-to possible in this situation to keep the interest rate at its low original number with $537 cash flow monthly, CoC: 17.4%, no money out of pocket and use the 43k to purchase another property? Any other suggestions to path forward would be more than welcome as well. If I am missing any other info to add for a better solution/analyzation let me know. I do plan to hold on to it for wealth building (appreciation around 11.3% currently).
Thanks BP family,