Sub To On A Rehab
I was told in a "boot camp" that sub to deals are primarily for "pretty" houses that don't need a lot of work. But I figure...if I have the deed, nobody is coming to take it away from me once it is fixed up. This seems like the easiest way to get into a property with the least money outlay, and use my capital for repairs and marketing.
Any thoughts from the experts???????
Thanks for all your input.
Swaf
I agree with Jeff on the sub-to issue but why not use someone elses money for fix up? Don't tie up your personal funds. Pay a little to use someone elses money.
It is critical that you document all repairs so you will not have trouble when you refinance/sell. The more receipts, the better.
JohnCl
[ Edited by JohnCl on Date 08/03/2004 ]
Don't be fooled. Look at the deal as a whole. If fixing up will kill the deal then don't do it, if the equity allows for fixup, then do it. I'm closing (hopefully) tommorrow on a townhouse that needs siding, paint on the inside & minor roofing work. I should still net a decent profit when all said and done.