Flash-Money - Posted by Robert
Posted by Robert on January 04, 1999 at 21:05:37:
Your input on this would be greatly appreciated.
Seller has a 4-unit all 1 bedroom (converted 2 unit). Listing agent set price at 72,000-89,000. Building next door is 2 unit, same lot size, same square footage, built in the same year, sold last year for $47,000. Is currently accessed at $59,000 by the tax accessor. The 4 unit was accessed at $37,000, 10 years ago as a 2 unit. We bid $62,000 on the 4 unit, owner taking back 20% second mortgage. Rents generate $1800 per month income. Seller countered at $75,000 taking back 20%. Seller has medical problems, he has $1000.00 left on his mortgage, wants to go to Hawaii in Feb. and enjoy the time he has left. Our intentions are to rent these units for 5 years then trade up. We considered offering a lease option but seller would want a larger selling price which would take out our profit when we go to sell. Several questions. 1) How does this deal sound? 2) Trying to buy this with no money down, a mortgage broker told me if we can show we have cash on hand (which we do) for the down payment, they can get us the mortgage but at the closing the first mortgage gets filed and the second mortgage must be filed without the knowledge of the mortgage company. The broker reffered to our cash that we bring to the closing which we will immediately get back as flash money. Have you ever heard of this? The broker says this is done every day. 3) If this deal goes, could this be accessed as a 2 unit since it is already listed at the tax accessors office as a 2 unit?
Thanks for all your help.