Newbie Needs Opinion?
I came across a 2bd single fam house,asking price 110K very good area, seller is motivated he is moving due to some health issues,comps in the area showed an exact same house sold for 135K.
The catch is,the house needed 11k worth of repairs as assessed by a contractor.
I have a little over 11k on www.hand.i have money for the repairs but not for a down payment on the property,i dont have a good credit..
My thought was to give him his asking price but ask for seller financing for the down payment??
my question is?
1)Is the deal worth pursuing considering my limited amount of cash, or considering the amount of cash i have to put in?
2)can you give other suggestions on how to structure this type of deal,with less cash out on my part e.g.financing etc.
thanks and GOD BLESS to my advisors...
Find out what the seller's mortgage balance is and also the montly payment. You can take the property subject to the existing mortgage--just start paying the sellers payments.
You'll own the property with a deed so you'll feel comfortable rehabbing. Within a few months you'll have the place sold and you can pay off the origional loan (or better yet--offer owner financing to your new buyer).
A word of caution is that 2br homes sell much slower than 3br homes. Know your area and know if you'll have a problem.