Advice on 1st Deal - Posted by Kim
Posted by Kim on March 09, 2001 at 20:37:23:
I have the chance to get into my first deal. Here are the details. Any feedback would be helpful. Is this something worth pursuing:
Women owns house, brick construction, 3br, 1 1/2 ba. attached garage, 1500 sq.ft, in average part of town. It has a new roof, needs dishwasher, carpet is 2 years old. It was built in 1978She is 4 mos. behind in the mortgage due to illness/unable to keep working F/T. Mtg payment is $645 p/mo. She owes $1,233. in back taxes. House was refinanced in August, 1999, at $51,000 and appraised at $69,000. (I know I would need to get comps.) She is asking $57,000.00, has $47,000 in equity.
The person who brought this deal to me has it tied up with a lease option, which he will sell to me for $2,000. Owner needs something to happen soon since another mortgage payment she can’t afford is coming up the first of next month. She will soon be facing foreclosure. Wants to move on selling this quickly. Good chance she would show the house, save me that hassle, and the son will paint the interior as part of the deal.
If I spend 2 grand to step into the current option holders position, what could I be stepping into? I know I have read other people’s stories numerous times, but now that I am up to bat, for the first time, in a for situation, I feel like the deer in the headlights. I would much rather flip than get into a Landlord situation, but I could do that on a short term basis.
Any constructive feedback would really be helpful. Thank you in advance for your suggestions.