Indianapolis Subject-To Deal, Or Not?

[Ben G.]

Little Flower Neighborhood in Indianapolis

2BR 1Bath Bungalow

Current Loan Balance: $38,000

Seller's PITI Payment =$380 seems high, but maybe not? $95 of that payment is taxes. What would be his insurances and taxes, I'm not that great at math :)

Will Manage Myself and there are recent CapEx upgrades.

Maintenance - $63/ month (10% of rent payment)

Vacancy - $63/ month (10%)

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$625 Gross Rent Payment every month

-$63 Vacancy

-$63 Mainetenance

-$380 PITI

=$119 NOI per month

I planned on putting $5,000 down on the subject to financing

I am estimating $3,000 in updates

$119 NOI per month x12 months = $1344 in NOI per year/$8,000 acquisition and repair costs = 16.8% CoC returns.

For those of you experienced in Subject To deals do you have any ideas on best way to go about closing this. (Wrap around, Land Contract, Loan Assumption etc.)?

For those experienced in the Little Flower or Indianapolis market, does this seem like a good deal?

For everyone, what are some exit strategy ideas to make money on the back end?

Thanks for the feedback! I'm scheduled for inspection Monday evening, and will keep you updated unless some of the more experienced members in these types of transactions tell me to run from this deal...