Need your thoughts on a possible subject-to deal?

[Jerry Parks]

Hello BP Community… I’d like to request your opinions on a deal.

I am looking to purchase a 4-plex. This property was previously under contract by a house hacker.Unfortunately, his financing fell through.But fortunately for me, I now have full appraisal and inspection reports from his due diligence.

The interior has been renovated already (not great, but serviceable because the house is over 100 years old), but the exterior needs about $30,000, to include a new roof, exterior shingle repair, deck repair, separate garage work, brick work, and chimney repair. Also, inside could need updated plumbing and electrical (also possible asbestos insulation). New HVAC.Current appraisal as is equals $215,000.Estimated ARV is $285-305,000.

Current Rents:
Unit 1 - $1150
Unit 2 - $825
Unit 3 - Vacant_Est. Rent $900 (was going to be the house hacker’s unit)
Unit 4 - $600

Totat Rents: $3,475/mo - $41,700 year.

Expenses (minor maint., lawn, pest, utilities) - $7,000 (potential to unload $3,000 of utilities by metering each unit)
Insurance - $3,600 (Flood zone)
Taxes - $3,700
Debt Payments - $14,000
CapEx. - $4,000
Property Mgmt - $6,000
Vacancy - $2,500

Total Outflow - $40,800

Sale price is $200,000, which matches the remaining loan balance. I’d prefer to assume the mortgage so I can save the down payment to use as rehab money. Seller says assumption of the mortgage is unlikely.

Seller is okay with a much lower price and has considered a short sale. I think this is unlikely as they are not behind on any payments and the property hasn't even been listed on the MLS.

Thoughts?