Need DFW Investor advice on Subject To deal!

[Daniel Robbins]

I'm looking at possibly doing my first Subject To deal and need some input on this deal. This is very preliminary so please bare with me. The house is a 3 bed 2 bath 2300 sqft typical tract home in Arlington, TX. Needs some work but I haven't looked at it yet to assess just how much. Let's assume $2,000-$3,000. The mortgage balance is $80k but the monthly payments are supposedly under $500/mo. I can possibly rent this out anywhere from $900-$1200. The problem is that the market value for this home could probably only be about $90-$95k. Even the county property tax values have dropped for homes in this zip code($85k for this house). Is this a bad sign that the area is declining? (my personal residence taxable value in Fort Worth just went up) The monthly cash flow could be very nice IF it rents quickly. We are coming into a season that's harder to get houses rented out obviously. Several questions I have are:

What are the costs to do the Subject To deal including attorney fee for contract, filing fee, recording fee, etc?

Is this deal even worth doing without much spread between purchase price and market value?

Where can I get a copy of a Subject to contract?

I would really love to speak with another experienced local investor on the phone about this. If anyone could find the time to speak with me, please message me your phone number or just reply here.

Thanks in advance for any advice!

Daniel

[Hattie Dizmond]

@Daniel Robbins 

Arlington is getting as bad as Dallas in terms of really good areas & really bad ones.  I guess that's to be expected as large as it's gotten.

Can you give me a better feel for where in Arlington the property is?  There are areas of Arlington I personally wouldn't touch, just because I think you're going to see continued decline in the neighborhoods & schools, which will lead to a decline in rental rates.

As for the Sub2 stuff, I have contracts & disclosures. I do recommend you at least speak with an attorney, but I would be happy to share the docs with you just so you can get a feel for the wording, etc. If so, shoot me an email or PM me.

Hattie