Deal Review in ABQ

[Derek Mitchell]

Hey Guys. I've got a deal I would like some input in. I've got the opportunity to purchase a SFR subject to.

The current loan on the property in about 135k and it is valued at 150k. The payments are just under $950 a month but could be rented out for about $1150 a month, possibly more. I would be looking to keep it as a long term rental.

Also, the current owner are about 6 months behind, so it is in preforclosure. It would take about 8k to bring it current because of fees and such.

Not much work is needed on the house, maybe about $500-$800. It would be mostly cosmetic, i.e. paint touch up, cleaning carpets, etc.

There would, also, be extra fees, because I would want to check the title, have it inspected, etc. I would also want the paperwork done by a lawyer, just to make sure everything changes hands smoothly, and because I definitely want title.

To further complicate matter, a conventional loan is out of the question, because I just changed jobs. I am in real estate full time, and for most loans, you need a 2 year history for commission based jobs.

Lastly, what intrigues me is the possibility to take the property subject to. It keeps cost down since you don't need to put 25% down. The homeowners just want out, and I just wanted your guys input on if you would do it, or if you have any creative financing ideas, etc.

Thanks for your input.