Posted by Brent_IL on February 05, 2002 at 23:14:48:
Assuming comps hold up:
1 - Owner has no equity. Sub2 via equity holding trust only if, and when, you find a L/Oer or R/B for $210-220.
2 - I don’t understand. Is your offer $1,350/month and L/O with a $137,000 strike price? If the house has a L/O tenant with a strike price of $137K you have to honor that option if you buy the property. Are you trying for the spread between the loan balance and the $137K strike price?
$25,000 in repairs doesn’t mean anything to you. People who rent or buy homes expect them to be in good repair. It’s something for you to consider that things won’t have to be replaced for a while, but you can’t base a deal on it.
Deal #2: ARV=$160,000 (appraised in 10/01)… Loan Balance=$120,000 … First Mortgage=$95,000 … Second Mortgage=$25,000 … First is 7 1/2% and Second’s Int. is unknown, but payments are $350.00/month. First Payments are $950/month … Turn-of-The-Century Victorian two-story SFR that casn be converted to two units. 3/2 and 2/2 …Renting out for $1,350/month and L/O with a $137,000 strike price.
Owner invested $25,000 in repairs over last 9 years supposedly. What would you do with this???