Need Some Expert Insight
Ok.. I've got a co-worker that is wanting to get out of their house to move back home and go back to school. I haven't gotten the full details on the house yet, but here is what I've been able to determine.
Asking Price $199500
Comps FMV $189000
Owed: $169000 @ 5.5% on 15yr Fixed
They are listing with an agent, so I feel I can negotiate them down to closer to $170000-172000 by subtracting out what they'd pay for an agent/closing/repairs/etc. Obviously, from the numbers above, they are still asking too much for the house, and the fact that they've reduced twice in 3 months would lead them to understand that fact. However, my main concern is not necessarily the price (because I think I can get it down), but is the terms on their mortgage.
By my estimations, they should be around $1500 or so/month which, I don't think I could rent it for more than $1250-$1300/month.
I've already thought about offering a L/O and/or Sub2, but again, I'd be loosing money on the house each month unless a) I can pull in more than I think/month, b) I can get a T/O willing to pay over their monthly rent for 150% price credit, or c) the sellers are willing to partially fund the monthly mortgage to make up the difference.
Now to the question.. what am I missing? Is there any ideas out there that I could use that I'm not seeing? This is my 1st deal that I'm really looking hard at, but from my point of view, I can't see how to make the numbers work.
Any help would be appreciated.
Thanks.
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