working to buy a duplex sub2 here are the stats!

[Elliot Smith]

Hey I am looking to purchase a duplex that I got off my mailers. The owner said she just wants to be done and will sell it to me for what she owes. My thoughts are that I want to buy this with a contract where she still has the mortgage. This way I can get into it with no money down. The PP is about my max of what I would consider a decent deal for this area right now. Numbers

PP $148,000 each side is a 2/1 800 sqft

Worth as is $170,000

Rent $1650

8.3% vacancy $137

taxes $175.75

Insurance $67

Water/Garbage $90 ( I will change this as I change tenants)

NOI $14888

Mortgage payments $998 ( this includes taxes/insurance)

Cash flow $5821

I want to just to just take over her payments on a contract then refi out in a year or two. However I have very limited knowledge in this area.

I know this can trigger the bank to call the note but has anyone had that happen? This was a BofA loan that was sold to flagstar bank.  

This property does need some work but I live a mile away and can fix a lot of it. The roof will also need to be repaired in a year or two.

Any imput would be grateful!

Elliot

[Elliot Smith]

Originally posted by @Steve Vaughan:

@Elliot Smith.  That's great.  Do not screw this seller.  Do what you say.  I have provided the main points to protect you both like look closer at the title, over-disclose, don't mess with the insurance and pay the mortgage co directly.  It's ok to not have all the answers when you meet with her.  At the same time, it isn't anyone's job but yours to put the pen to paper and draw up a purchase contract that works for you both.  Best wishes!    

 Steve, 

I just wanted to let you know that I under up wholesaling this property. I wanted to keep it but I felt this was the best win win for everyone. The seller wrote me a full page letter of reference after this deal was closed. She was so happy of the outcome. Thanks for your advice, as it stuck with me. I do this because I enjoy people. The money is just extra.