Sub 2 Calculator needed

[Michael Mullins]

Hello BP,

First off thank you for the help, this is a great forum to ask questions in. First I love the calculators that BP has for it's pro members they are great. However, I was wondering if anyone has a calculator for a Sub 2 deal. Or guidelines on what they consider a great deal for a sub 2 deal. I just need some rules to follow so I can move forward. 

Let me inform you of what I have worked out with the seller.

I have a seller that owns 49k on a house that is worth 65k. And he is going to do a sub 2 deal with me if:

1. I take over his payments

2. Pay him a one time fee of 2k

3. Pay all the closing cost and refi costs in the future. 

I'm in the process of turning into a rental property and already have someone to put in the property at rental market value $800. After I pay for vac, repairs, cap, and management I'm looking at cash flowing $150 a month for a property that costs me 8k in (fee, light rehab and closing closes). 

Am I wrong to think that this is a great deal? 

[David Roe]

49k for a 65k property isn't a bad deal, do you have solid comps to show the 65k value?

Confirm it's a 30 year term loan and the intrest rate is fixed.

Selling the property lease option to buy would be a good deal, you just have to get the seler you're buying from to sign a lease option agreement that makes you the Prime and that keeps you leagal.  If you're keeping it make sure you put it in a Land Trust to fall under Garn-St. Germaine act of 1982 "Owner of record may transfer their intrest in their property from a given name to a trust (without) triggering the Due on Sale Clause in most mortgage contracts"