Has Anyone Ever...
...done something like this.
Taken over a 2unit building to pay off a $12K HELOC, that is in foreclosure, then borrow money against this property (FMV $110K, to use for other investments). Owner wants to collect all or near all of the rent ($1200/month) until he passes(74 years young). This is his sollution, btw. Also owns a SF right next door (literally built almost on top of one another) that he is willing to give to me. It has a $9K (can be bought down) city lien, and a $6K tax lien that a tax buyer bought and then didn't even want the property. (FMV $60-70K)The floor joists on 1 side of the house have fallen in. I haven't even been into it to look at yet. I imagine if a tax buyer didn't want it, it must be bad.
I believe I'm going to propose collecting the rents and remaining in charge of the property and then coming up with a management agreement with the owner and do a 70him/30me split of the rents.
Any thoughts/ideas/pitfalls/complications?
This guy owns 2 other houses on the same block with his wife. 1 with no equity ($35K IRS lien that we are working on with the amnesty law) and 1 free and clear, but plans to take out a reverse mortgage in order to pay out his wife on the house. This is a whole other story.
Thanks in advance,
~Mike
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