So, my partner brought in a great lead... It's in Old City, in Philadelphia, which is a GREAT area... It's 3 bed rooms, 2 baths, 3 floors, $280K owed to the mrtg co., seller does not want anything just to get from under the mortgage... Comps are going from $385k-$405k... It was recently reno'd, could use an update in counter-tops, fresh coat of paint... Sounds like a dream right? Well, the seller has been having difficulty renting it which has increased his urgency to sell as he is carrying the costs.. But I am concerned that there is too little wiggle room bc of the high balance of the mrtg, the low, yet still existing costs to cosmetically update the home for a high-end/maximum return, giving the seller some funds, and then our fee, paying 300K+ seems a bit steep to present to our cash investors, but they would yield an $85k-$95k return if flipped; which may change their minds :)
What I want to know is, what are some of our other options to save/participate in this deal? Since the seller has a sizable mortgage, I doubt the mortgage company will consent to seller-financing... We thought about a seller Lease option... But the seller seems to be at his wits-end with the property... It seems to be ideal to advertise as a buy and hold because of the location and the values on these properties are only increasing.. Ideally, $1500-$2000 in rent can be collected if not immediately flipped, and it can generate cash-flow, while gaining additional equity... But does this appear to be an attractive deal... It seems like a gem, but I know a lot of investors are wanting cheaper properties to not have to shell out so much cash... Let me know your thoughts...
He wants to list with a realtor also... I told my partner that if he is contractually bound to the agent, we could be cut out automatically until the contract ends... But please chime in and let me know your thoughts!! Much appreciated!
