Buying my first propert Subject to

[Rae Remer]

Ok, House is Worth 42,900. on zilliow the owner has a loan of $60, 400 left to pay the mortgage company. She is willing to subject to the house to me. But Heres the List of Problems

No A/c or Heat the unit is out

Water gets in the basement when it rains,

Model is in the Ceiling in 1 of the bathrooms,

The Backyard has a Pool that doesn't work at all

Heres Whats good,

Wood Floors in the living room

New Floor in the kitchen

It has a Pool in the Ground

the basement has a garage it seems like

and the back deck will have to be replace I estimate the work will cost about 10 k at the most

The property is in a bad neighborhood where value drops constantly

But I want to take over the house and rent it out for her should I take the deal or not

[Robert Leonard]

@Rae Remer my first recommendation is to never quote a Zillow value.  The site is useful when looking at sold comps in an area around a property you are looking at to get a "preliminary estimate" of values, but not reliable enough to quote their "zestimate" for value.  If it happens to be near the right number, this property is underwater and the only thing that might make this property interesting (not considering other factors) is if it were available by way of a short sale where you could purchase it at a more realistic value that has nothing to do with what's owed on the property.

Now, to consider the other factors.  No heat/air, a leaky basement, mold issues AND a broken in ground pool could easily run double your estimate of repairs.  When doing estimates on your own as a novice, you can expect it to cost twice as much as you think and take twice as long to get it done.

AND it's in a declining value area?  There are so many negatives to this property that I think they overshadow the few good things you mentioned.  This one is a clear no to me.  Keep looking and be patient about getting started.