IncomeRent $750ExpensesPITI $815Misc $300Negative cash flow $365.Since taxes vary locally, it’s hard for me to know how much is going toward the principal balance each month, but I’ll assume your initial loan was for 125K and say:Cost to sell this place now (commissions, closing costs $10,000)10 years of carrying costs: $43,800Principal pay down over 10 years: $20,26820 years of carrying costs: $87,600Principal pay down over 20 years: $57,49630 years of carrying costs: $131,400Principal pay down over 30 years: $125,000It seems like the negative cash flow outweighs the benefit of keeping this place, unless you just want to have an extra piece of real estate for your child, parent or whatever.As an investment, it does not seem to make sense.

I prefer to do subject-to transactions because I own the house and get all of the tax benefits, etc.

But, its pretty essential, IMHO, to have some cash.

Essentially the lender works with their lawyer to determine the “upset cost” of the property for the auction.

Interesting point about closing table payments, Wheatie...Essentially, when you buy the property, you pay the first year's insurance at the closing table (or even ahead of time directly to the insurance company and then provide proof at the closing table) this then starts your term. 1 year later you owe it again, that is where the escrow account comes in.Taxes are due when they are due, however.

First off I am thinking this is a bad deal for you.If he is being foreclosed on, on another home then why would you want him to essentially assume your mortgage, apparently he has a hard time making payments.And the whole bit about him making the repairs sounds good but it is only as good as his word.

A good CPA is pretty essential game.

If they allowed the assumption, they would benefit by keeping good performing loans versus loosing them if I have to refinance.

Yet these same banks will sell their mortgage notes and/or assign mortgage notes to third parties which is essentially the same thing.I understand both sides of the equation nevertheless.

There are many benefits to become a licensed real estate agent and being an RE investor.