Help With Possible Wholesale Deal Please!

[Amy Gan]

Hi guys!

My partners and I have received a lead from our direct mail campaign and the seller wants to sell his former home. He moved out 14 months ago and it is currently vacant, he lives not too far in a new home. He purchased the subject property in 2006 for $487K and owes about $350k.

The market rent in that area is just under $2000/mo and I am not sure what his monthly mortgage payment is, but I am estimating around $2500 or so.

We are estimating repairs at around $75k and ARV of $425.

We are still pretty new investors and are wondering what some of the best options are we have to present him.

We are thinking subject to, but I am thinking that wholesaling to a flipper subject to may have challenges since his payoff is about $350k. Am I mistaken? Is there a feasible way to work this option out?

Also thinking subject to and finding a tenant, where the seller would have to pay the difference plus $200/mo. cash flow, as I read a thread on here about that (subject to, they pay you, I believe).

I think him accepting a cash offer is unlikely, being the most we can offer is probably about $250k and that wouldn't pay off his loan, but am I missing something with this?

Please share any solutions you have and/or correct me if you see "something off" above. Maybe I'm not understanding or am unaware of something. Thanks in advance for any help and best wishes to all of you! :-)