Subject To Or Short Sale?
Hey gang..wanted to run some numbers by you guys to see which may be a better fit for this property.
3/2 brick ranch with basement. Basement is unfinished and has 6' ceiling. Tons of crap in basement.
Yard is in rough shape, looks like junkyard, needs new roof, gutters, and will need full paint and carpet inside. Will also need new central HVAC. Has window units now. I have a great deal on having HVAC installed (around 3k installed).
I am thinking about 7-9k in repairs to make look pretty.
House across the street is tad smaller, but looks decent and is listed for $115,500. Next door neighbor's yard looks like sanford and son's place..haha.
Comps in the area are anywhere from 85k to 130k.
Balance owed is 84k. Arrears are 4k. Owner said she would do a subject to deal. Not sure what stage of FC it is in, trying to find out now. There is no second.
Have a partner on the deal and we have the cash to pay the arrears and the repairs and also the ability to refi in a hurry if something crazy occured like the DOS kicking in. (790 credit score) I was thinking of trying to do either a modification or a forebearance agreement with the back payments.
Option 2:
Try to do a SS for around 65-70k. Then do a HML on ARV (have friend who is appraiser, said should be able to get 115 or so) to get HML loan for 75k..enough to cover purchase, points, cc and some repairs. Exit plan is to flip or do a lease purchase. We would do a non-seasoning refi as soon as the repairs were completed.
Whci is a better deal and why? Seems like our margins are greater on the SS, but never having done one, I do not know how difficult it would be to get a SS to go through at 65k, but nice return if so!
Any comments??
Comments(0)