OfflineI will try to line this out right to make the best sense.
I just bought a reo that will be a rental cashflowing approx.550.00. The lady to next door is terribly upset that a sec. 8 renter is going next door and after speaking with her she is willing to do seller financing, lease option etc. She then is willing to buy a flip that we are getting ready to start on, purchased for 65k and will sell to her at 125k, needs 10k in rehab. What is the best way to assume her mortgage to make it the most profitable to me? I will have to put approx. 5k into the basement in order to rent it and break even. If I flip it I'm afraid I will sit on it too long as houses don't sell real well in her area. I was considering a short-term lease option.
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depending on the figures...as always....the l/o may be a good strategy.you would have to give me the #s but subject to is another way you may research.Asandwich lease would be something i would be trying to organize now before you even make the deal.Look at the numbers and then advertise for rent to own your own home on cl .build your buyers list with all the info such as how much down they have,what mnthly payments they can afford then match them up with this deal or go find one that fits them and make $$$$$ in the middle !!
jay
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What are the terms she is asking if she finances the property??? It sounds like you know the area is she asking the right price and will the numbers work?? You could do a lease option and cashflow it with a sec 8 renter you tie up the property with little money.
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She isn't neccessarily asking too much in fact I could make money on her house at the end. It could probably sell for 95-105k on a lease option, I just wouldn't make any in the middle. After speaking with my partner we decided we"ll move forward with it just because she will be buying our flip then we will just put 10k of the flip profit in a reserve in case a lease option doesn't work out etc.
you could try a wrap around mortgage , this way it would be able to pay bal down a lot quicker; but in the end you have to decide what is best finacially better for your interest in the long run...math is the thing used in everyday
deciding factor in life , just way your best option... good luck..
but have you considered a Subject-To? Or a Land Trust? You have better control with either of those. Excuse me if I spoke out of turn. trying to read/learn rules.
A suggestion(s) were asked for! Sounds like a good set of choices.
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Michael Radtke
www.nationalpropertyscout.com
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she decided that she doesn't want to buy our flip after all, but she still wants me to buy her house. I told her no deal. I don't have any incentive to buy hers at retail if I can't unload mine quickly. At least I don't have to stress over her house anymore.
Oh and Yoda your posts are always welcome, thanks for sharing.