Here I go again digging up an old thread from years past! It just seems most appropriate to post a response within this thread so you guys can read what is above it.
Anyways, subject to existing financing looks like a great way to structure a deal. I'm beginning to get a clearer picture as to what it takes to make one happen, but I'm not yet clear on specific characteristics that you should look for.
There is one particular property that I'd like to do this for - my parents' neighbors are currently trying to sell their home because they need to purchase a larger one to accommodate one of their ill parents. They are not behind on the payments and do still have credit / income in place, but their home has been on the market for at least 6 - 8 weeks now. I think this particular couple has been living there for perhaps 4 - 6 years, so there is probably not a ton of equity in the property. They did, though, renovate massively - new kitchen, new floors, new wiring (got rid of aluminum), insulation, etc. I am certain that the appraisal value of the home today would be in excess of the purchase price that they paid for it.
So - the question is, how do I work this so that they can move on to their next home and spend time with their loved one instead of worrying about the house? I was thinking of purchasing subject to, then renting it out for cash flow for a year or two, until I can sell it at the newer value and pocket the equity that had accrued?
Items I know I need to find out - existing mortgage info (LTV, interest rate, is it fixed, loan term, etc), how much equity they have in the property, if the property would cash flow for rental under the current mortgage, if they are ok with moving on from the property without taking cash with them
I haven't done any real estate deals yet, and it sure would be nice to start by helping a neighbor in need.
Feedback, anyone?
