Hello, I'm a newb from Bentonville, Arkansas.
I found a motivated seller in a nearby town that has around 30k in equity paid into his 105k home loan. I contacted him because he needs to sell "ASAP". He told me his wife is pressuring him to move further south and he needs to get rid of his current home quickly.
I've considered offering to purchase his home "subject to" the existing financing. I assume he will also want cash up front in exchange for the equity built in. I can maybe haggle this down to the $10,000 cash I can offer him today, based on the fact that he doesn't have to pay a Realtor or any of my closing costs.
I would be borrowing the $10,000 from a family friend at a 10% interest rate to be paid within a year.
The current Mortgage is around $450/month, and I can realistically expect double that in rent (comps in the neighborhood.) So it looks like this:
$75000 remaining balance on loan
$11000 cash and interest borrowed
$2000 advertising/cleaning/touchup for lease option or sale
totaling ~88k
Sale price is realistically around 100k, so I'm looking at around a 12k profit, correct?
If this sounds ridiculously juvenile, its because I am just winging this.. trying to learn.
