Creative or a pipe dream?

[Brent Hill]

Trying to buy my first property from a friend who lives 4 houses down from my house in a golf-course community.  House is worth 205K, she owes the same, but would sell it for about 40K less if she could pull out the 40K in a private loan, etc that she used for college when she refinanced the house.

Trying to think of ways I can make a deal on this house for 165-170K...it would be a great buy at this price as the house is only 10 years old and needs nothing.

Is this  a pipe dream or has anyone every pulled off a deal like this before?  She was renting the house out for 1150/mo after paying 10% to property management but she said her pmt to bank is 1700/mo on a 6% loan..I haven't double checked all the figures yet.

I know she is motivated as she lives in CA, in the Air Force full-time, recently divorced and she just wants out of this house.

Any advice or tips is greatly appreciated.  Thanks in advance.

[Brian Gibbons]

@Brent Hill

Worth 205, owes 205

Equity zero.

Rents for +1150 - 10%, costs are -1700 PITI not including maintenance

Are you frigging kidding me?  Run.  You are at $600+  negative.

The only thing I can think of is short sale, or deed in lieu, and it is not underwater.  Get a shortsale Realtor to talk to the bank.

@Bill Gulley