Subject 2 Or Wrap
I've been reading Investing in Real Estate by McLean & Eldred & have a question about Subject 2. Ideally, I would want to buy the below example Subject 2 and keep the existing financing in place, but if not, would this work
Sales Price: $100k
Loan balance $70 @5%
mtg payment: $374
Down: 5K
They write a $95k Wrap Mortgage @ 7%
I pay them $628(est). They make $254 each month.
SELL
I could then either rent this for cashflow
Sell again on a Wrap for monthly profit
Sell on a Land Contract for profit(I keep title till paid off)
Sell on a L/O for a number of years, then have them puchase @ appreciated cost
Do any of these scenarios work? I know I have the big DUE ON SALE clause to worry about, but is that the only obstacle & is there any way around this?
Thoughts/critisizims/praise/abuse welcome
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