Deal quality?

[Ryan Novak]

I'm looking to purchase this single family home for a potential rental property. The owner is relocating and he currently has renters occupying the property. He's asking for 70k and comps are in the higher 70's. He says there are minor repairs needed but I haven't seen the place. The renters are paying $950/month and I'm guessing the mortgage payments will be around $400/month. It sounds like some good cash flow, but I'm wondering how I should finance it? A 30 year fixed rate? Owner financing? The owner has a 30k mortgage left on it. Any advice is much appreciated! Ryan

[Brian Gibbons]

What is the existing financing? Amt, type, how old is the note, etc.

This comes into play as to what "quality" the financing is on sub2, wrap or lease option assignment.

What I look for:

• Neighborhood
• Quiet street
• Condition of property
• Debt Against - Note - Pmt, interest rate, date purchased, bal, fixed vs arm, etc.
• Floorplan desirability
• Attitude of Seller -  Willing to help the Buyer Buy the place?