Possible deal.....subject to

[Josh Gibbons]

Ok, this is technically my first real deal on my own.

Foreclosure in my town, found out about it via them coming to look at my current house that I'll be renting out.

Property-2/3/4 bedroom half double, 1.5 baths (the 2/3/4 is its basically a 2 right now, with a 3rd being a walk-through into the master. The attic is semi completed, just needs heat to be a 4th) Location is fair....not a bda neighborhood, just on a high traffic street, and has a 3 car garage which 2 spots are deeded to the house.

Repairs-windows, refinish hardwoods (beautiful floors throughout, just need sand/refinish), kitchen needs counters, bathrooms just need quick overhaul (toilet, vanity, sink), paint, and thats really about it.....I "guesstimate" no more than 10k on the very high side, and with me doing the work, def well under 10k. (if the deal contiunes I'll get a true contractor estimate)

Numbers-$50775 payoff
-$9772 in arrears (like 7 or 8 months plus penalties I am guessing??)
-7% interest
~$648 a month
ARV-109k-119k, more in the 119k area
Rent-850-900 month

Possible issue: Zoned general business??? They said they had it sold a year and a half ago, and the people couldn't get the mortgage due to it being general business, and not residential?

I would do it as a subject to loan, pay the arrears, and then take over the mortgage.......they are looking to get some money in their pocket, I'm just not sure how much to give em if any at all? They also have a realtor coming to look at it etc

Overall if I think about it right, 50k payoff, 10k in repairs, and say $4000 in carrying costs (6 months) and my total in would be 60k without arrears....the arrears have me confused as they are so high....so i'm guessing there are some pretty high penalties tacked on by the bank)

So 60-70k(with the arrears, depending how much it would take down the principle when I pay those) and sell for around 105-120k seems to be ok to me.....I'm sure I'm missing something tho...Be easy on me, this is my first deal and I'm basically all on my own.....all the info I've found out on my own, trying to do what I can here.....

thanks in advance!