Subject To Purchase

[Amanda Wilks]

Hi fellow bp investors! I have an opportunity to buy a property subto. The property is upside-down in equity. The market value is around $220k. The current loan balance is $235k with a 5.12% interest rate. The average monthly rent for ltr is $1650 and the monthly piti is $1770. I have a fellow investor telling me it's a great deal because I'm acquiring a property with zero out of pocket and I can do the following strategies. 1. Sell as a seller finance with 10% down and charge about 8% interest increasing the monthly income. 2. STR are not allowed with the HOA, but MTR are. I've never done a MTR so I'm not sure how to stress test on that. 3. Wholesale. I'm not sure why he thinks it would be a good wholesale deal being upside-down in value. I'm struggling to see how it can be a good deal and would like some other opinions. Maybe there's something I'm not seeing, or maybe I just need to keep looking for something better.