I have a motivated seller and Im frozen....

[Keith Agnello]

Hello everyone!

I had a seller respond to an ad that needs to sell and needs to sell quick due to being out of a job and I need feedback on the best strategy to exit the property.

She owes the following on the property:

HOA $3,835

Taxes $5,000

Mortgage $69,700

This is a 1 bedroom condo with a tenant in place that has been there for 3 years and the seller just raised the rent to $695 and the tenant wants to stay on a month to month lease. This is in the Palm Springs area and it is a desirable place to live so even if she left, I know tenants are not hard to come by.

All of my deals have been "low hanging fruit" wholesale deals with equity cause this is who I have been direct marketing to but now running ads this is my first lead that is not so clean.

Is a seller financing situation the best case with a down payment of the balances owed being worked out? Is that even attractive for an investor for me to wholesale?

Any feedback would be great. Thanks!

[Aaron Montague]

@Keith Agnello 

Pass on this one.  Walk away quickly.  

This property is a bad Buy and Hold AND a bad Flip.

Bad Buy and Hold:
Your taxes and HOA fee combined are HIGHER than the rent. Plus you have a small pile of other expenses to pay.

Bad Flip:
Assuming your ARV is 80k. 70% of ARV is 56k. Plus there will be repairs.

Result:
Run away, unless you are a Realtor, then go get it under contract with your brokerage and get it sold for her.  Do not put any of your money in to this property!!