Need Direction
I have been wanting to get into RE investing for the last couple of years...this may be a good opportunity .
My father in law lost his job about six months ago. He lives in a nice home and owns two rental properties in a neighboring community which are both occupied. These homes are side by side with a decent size amount of land between them. Both investment properties are worth between 230,000 and 250,000 dollars and are in good condition. He is in the process of making a decision to sell one or both of these properties to free up some cash and improve his cash flow until he finds a new job. There is an outstanding morgage on both of the properties of about 100,000 ea.
My thoughts on a deal and i would like anyone's thought on how you could sell a win win deal to acquire oe of these properties with little or no money down(no more then 10,000 - 15,000 and focus on some benefits for the seller to go this route. I know my father in law is flexible and would consider holding the paper on some type of deal.
House A worth - 250,000
Existing mortgage -100,000 (not sure if it is assumable)
monthly rent - 1,200
tax and mortgage payment - 950
I mentioned the lg lot because i felt i may be able to subdivide the property to sell the lot or build another home on the land between the properties.
House B 230,000
rent - 1,100
mortgage /tax 900
exisiting mortgage of 110,000
Hope this gives you a general idea ...my idea was to try to structure a deal ...where he sells house B takes his profits to satisfy some of his debt(hoping this covers it) and he sells property A to me for little money down(10k or 15k) ...assume the 100,000 mortgage and he holds the paper on the balance.....id be selling the fact that he wouldnt have to pay cap gains on both properties (is that 30 or 40 %) and he could make some interest on his money and have a positive monthly cash flow. I guess im thinking invest the 10 or 15 k ....pull enough rent to cover the mortgage hope that the value increases and explore the extra lot...that could go for as much s 50,000 or 60,000 in this neighborhood......hope i havent bored you ...all ideas or selling methods greatly appreciated ...or just tell me this isnt a deal to pursue...thanks rob
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