Creative Financing Advice

[Kevin Wiltz]

I have a question in regards to helping an absentee owner get out of his investment home.  I would like to purchase this but the numbers for cash don't seem to make sense for me as an investor.  This owner lives in Washington State but has a rental property here in Houston, TX.  He just wants to cut all ties with this home.  He's moved on with life and doesn't want to rent this home anymore.

There is a tenant in this house that pays $1,200 an month and has been there for 7 years and always pays on time and never gives him issues. He currently has a mortgage on the home since 2007 with a rate of 5.125%. His mortgage payment is $1,100 a month. He currently has a balance of $113,000. The ARV on this home is around $140,000.

He doesn't want to do a Subject 2, because he doesn't want the home in his name anymore.

I wish he owed a little less and I could just buy the house at a lower interest rate and rent it out myself.  Especially since rents in this area are going for around  1,300 - 1,600 per month.

Can anyone recommend a solution I could provide to this seller or any creative way to benefit both the seller and myself?

[Steve Vaughan]

Gotta be a sub2 here to get creative.  You may have meant that he doesn't want the loan in his name anymore? Sub 2 would get the home out of his name, of course. You said he doesn't want the home I'm his name anymore.

Anyway, I'd just buy with bank loan for the $113k plus closing if he'd do that. Nice turnkey place that far under FMV? I'm all about getting creative, but sometimes clean and simple is just that.