Need Advice on this Akron SubTo Deal

[Su Pak]

Hi, reaching out to the BP community about this one. What do you think about this deal? I'd appreciate any suggestions. 

3/1.5/1,056 sq ft SFH in Akron, OH
Estimated ARV: $130k - $145k

Rehab estimate: $30-40K

-  Entry Fee (assignment included): $22,000 + CC + TC ($12k of the entry fee goes to seller)
SUB2 Mortgage takeover details. Deed is transferred to the buyer's name.  Mortgage stays in seller's name but is paid by the buyer through a promissory note (aka contract)

Mortgage Balance: $102,000
Interest Rate: 4%
PITI: $531/month

SELLER FINANCE PORTION:
Seller Finance: $300/month to seller for 53 months (4.4 years) = $16,000
Total House Payment: $831/month (PITI + Seller Finance)

NOTE about CLOSING and seller: Seller would like to remain in the house until November 12th, 2024. He is waiting to be transferred into a nursing home. Buyer could either, purchase the house now, while seller continues to make all mortgage payments until he is out, as well as NO Seller finance payments to be made until seller is out. Seller would also only receive half of down payment at COE and other half after he leaves on Nov 12th. OR, buyer waits until Nov 12th to do the deal...

Any other ideas?

[Nicholas L.]

@Su Pak

it doesn't make sense to me... a $22K entry fee + $30-40K rehab and then no way to refinance.  so you have $50-60K stuck in a property worth only $130-140k?  

[Su Pak]

Quote from @Nicholas L.:

@Su Pak

it doesn't make sense to me... a $22K entry fee + $30-40K rehab and then no way to refinance.  so you have $50-60K stuck in a property worth only $130-140k?  

 Thanks for taking the time to provide your input @Nicholas L. Just needed to hear it from someone. 

[James Wise]

Quote from @Su Pak:

Hi, reaching out to the BP community about this one. What do you think about this deal? I'd appreciate any suggestions. 

3/1.5/1,056 sq ft SFH in Akron, OH
Estimated ARV: $130k - $145k

Rehab estimate: $30-40K

-  Entry Fee (assignment included): $22,000 + CC + TC ($12k of the entry fee goes to seller)
SUB2 Mortgage takeover details. Deed is transferred to the buyer's name.  Mortgage stays in seller's name but is paid by the buyer through a promissory note (aka contract)

Mortgage Balance: $102,000
Interest Rate: 4%
PITI: $531/month

SELLER FINANCE PORTION:
Seller Finance: $300/month to seller for 53 months (4.4 years) = $16,000
Total House Payment: $831/month (PITI + Seller Finance)

NOTE about CLOSING and seller: Seller would like to remain in the house until November 12th, 2024. He is waiting to be transferred into a nursing home. Buyer could either, purchase the house now, while seller continues to make all mortgage payments until he is out, as well as NO Seller finance payments to be made until seller is out. Seller would also only receive half of down payment at COE and other half after he leaves on Nov 12th. OR, buyer waits until Nov 12th to do the deal...

Any other ideas?

 SubTo deals are for criminals and scammers.

[Richard Schubert]

What zip code is this in? For several Akron zip codes a 3/1.5 at that sq foot would be 115 to 130k fully renovated. There is a good inventory of flipped houses for sale at that price right now.

[Regina Blake]

Hi, congrats on your investment! I would also speak to your lender, financial institution and the Realtor/Broker professionals about this situation so, you can make sure you are on the right track, and everything works out in your best interest. Feel free to reach out if you have any questions. Best Wishes!