Need help to evaluate wholesaling a subject to deal

[Bijal Patel]

I need assistance in evaluating this subject to deal. This is my first real estate deal and I would like to wholesale this deal for quick cash. I have this house under contract “subject to”. The Seller is behind on payments by over 1 year.

Location: Atlanta, (Decatur) Georgia

Comps: $75,000 to $80,000

Repairs: $5,000 – (cosmetic and replacement of a refrigerator)

Condition: the house has been vacant for over a year. However, the seller lives nearby and goes to the house once in a while to make sure that things are ok.

Amount to pay the bank to make the loan current: $17,000

There is only one loan on the house. No other liens on the house.

The Loan period is 30 years started in June 2011

Principal amount: $107,725.00

Rate of interest 3.25%

Interest type: ARM. Next evaluation of the interest rate will be in September of 2015

Monthly loan payments to the bank: PITI $592.06

Market rent potential: $850 to $900

Sec. 8 rent potential: $950 to $1,000 (section 8 will rent houses on this street)

I do not understand subject to deals completely.

Is there enough meat on the bone for me to wholesale this deal? So that I make cash and the investor makes a decent return.

Thanks in advance.