Yet, it is money she is owed per the existing agreement.How are you setting the price of the property?

If I understand your numbers, the tenant paid $61K and owes $54K.

She owes $800 in back taxes.

They're more about cash flow investing than flips and even though alot of their educational stuff is outdated now, their principals remain the same and they always advocate operating under updated information.

I just give them the difference in our agreed price and what they owe (if there is any) and tell them something like "OK, well it doesn't make sense to pay off this loan that's already there".

Conventional for mixed use financing will require:The property must be a one-unit dwelling that the borrower occupies as a principal residence.The borrower must be both the owner and the operator of the business.The property must be primarily residential in natureA gift can be provided by:• a relative, defined as the borrower’s spouse, child, or other dependent, or by any otherindividual who is related to the borrower by blood, marriage, adoption, or legal guardianship;or• a fiancé, fiancée, or domestic partner.The donor may not be, or have any affiliation with, the builder, the developer, the real estateagent, or any other interested party to the transaction.Gifts must be evidenced by a letter signed by the donor, called a gift letter.

Their financial position has since changed and they are starting to rob Peter to pay Paul on payments.. aka every month getting further behind.The house Appraised at 172,000 they owe 145,000 only a 7 year old house and when you run the numbers if they ask 172,000 probably settle with 165,000 (96% of asking price) and then figure a realtors commission and closing fees and last year's property taxes (10%) $16,500 that brings it down to 148,500 roughly .At the end of the day they would walk away with $3,500 if they were able to find someone soon enough.My proposal to them is to be done with it right away so they can get out from having a payment they no longer can afford doing a sub to financing offer and give them 147,000 ( they get 2g in cash for moving or whatever they choose) I will turn around and finish the basement off .

The MARIEA real estate investors group meets in Owings Mills.

That's why I am looking at this to begin with.The current owner must have lost his mind, paid an insane price for the property in 2007, he still owe the bank 700k on it...and he bought it in 2007 from someone who paid 250K more than he did in 2006...and now the bank's approved SS price is 74% less.

*Finance Expenses$50,000 Purchase Pricex 65% LTV$32,500 First Loan@ 4.75% (5/30-year Mortgage)$233/month Principal, Interest, Taxes & Insurance (PITI)*Operating Expenses:$800/month Proposed Rentx 75% (to discount for vacancies, utilities, etc.)$600/month "Discounted Rent"$600 Discounted Rent-$233 Mortgage Payment (PITI)-$235 HOA Dues$132/month Positive Cash Flow