Townhome Pumping Great Numbers!?

[Steven Birch]

Hey BP!

The numbers-

Asking Price- $159k

Taxes-$4k

HOA- $220

Lender offered 5% down at 2.76% 30 year conventional. 

Previously Rented for $1600

Cap Rate- 7.49%

Cash On Cash- 26.31%

No work "needed" to rent it out. Has new LVT throughout, new tile, new fixtures, new trim, new paint, new furnace, new ac. Cabinets/countertops are old and I may swap for about $5k.

I came across this townhome thats about 2 miles from my SFH. Its in a great neighborhood, great school district, and comps are anywhere from $160k to $200k. However, its listed as a short sale, but the owners owe less than asking price? Bank related they just stopped paying and are in pre foreclosure, giving them the opportunity to sell being they have equity. Has anyone heard of this?

DEAL OR NO DEAL