Is This A Deal?
Is this a deal that can work?
Seller owes $151K
ARV: $160K
Repairs: Carpet maybe ($2000)
Payment: $1200
Proposed exit strategy:
Do a sandwich lease option. Have the seller do a lease option with me for nothing down and the payment equal to the mortgage payment.
Then offer a lease option to a tenant/buyer for an option fee(instant cash) and a higher rent(cash flow).
What do you all think?
Thanks,
Nate
Could you buy subject to the existing loan and for that amount, have the seller agree to make the next 3 monthly payments.
Exist strategy would be a resale sub 2 at 170,000.00- 175,000 at an interest rate greater than that of the current mortgage with 7.5k down all due in 5 years or before the sub 2 interest rate increases... no repairs
or lease with option to purchase at 175,000 7500.00 option consideration and a monthly rent payment of 1500.00 with a 200.00 rent credit must cure purchase within 24 months.
I don’t like sandwich leases… What happens if the seller defaults on selling you the property?
[addsig]
Thanks for the advice.
On the first suggestion, are you suggesting taking the deed to house and then selling it with a wrap around mortgage to another buying? Thats what is sounds like.
And on the second suggestion, take the deed and offer a lease option with those terms?
Moral of the story: Take the deed, right?
Thanks,
Nate
[addsig]