Real Estate Investor · Hampton Roads, VA · Member since 2014 · 8 posts · 4 votes
Hello all!
I have a motivated seller (from Craigslist, btw) who wants to sell his house to avoid foreclosure. He says he's not in foreclosure yet...only forbearance for the next few months. He owe's about $3,000 to bring the payments current. The ARV of the house is about $77,000 and he says he still owes $60,000. He says he 100% wants to get rid of the house and only wants to pocket $2,000 after all is said and done. Additionally, the house is in good condition and has a brand new roof.
I was thinking a sub2 deal was the best way to go (if seller agrees, of course)...is that correct? Did I provide enough information to get guidance on this?
3/1, central A/C, brick/sheet rock, new ceiling, 882 sq ft.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
$60K + $3K to reinstate the loan plus $2K cash in his pocket makes this a really thin deal. If it needs any work (it does) there's no deal here for a rehabber, if the ARV number is accurate.
Real Estate Investor · Hampton Roads, VA · Member since 2014 · 8 posts · 4 votes
12y
Thanks, @Jon Holdman. That's what my gut said. I'm getting in touch with him again, as he said he was "shooting from the hip" with some of his numbers, but I figured it would be a stretch to make this work. Thanks, again for your guidance!
Real Estate Investor · Hampton Roads, VA · Member since 2014 · 8 posts · 4 votes
12y
@Ellis San Jose, I just went and spoke with the seller. He really wants to get rid of it like, yesterday to avoid foreclosure or short sale. He has a 30 year loan, 5.1% interest rate. Mortgage is 540 per month and he was renting at 900.
However, he bought it at 70,000 and still owes 64,000 plus 3,000 to make the loan current...plus an additional 2,900 in judgements against the property...plus probably 10,000 in repairs.
Doesn't seem like this could work...in my amateur opinion.