Here’s the numbers. What should I do? - Posted by Andrew-VA
Posted by Andrew-VA on June 14, 2000 at 16:08:50:
Two days ago I found a 3/2 SFR appraised for $69,500 back in February. The loan balance is $55,125.84 for 15 years @ 8.5% interest with monthly payments of $521. The seller is one payment behind, and owing taxes since 1996 totalling $2,271.64.
Realtor is willing to finance his $3000 commision as follows: $1000 now, $1000 in 1 year, $1000 in 2 years.
The bank and seller are willing for me to assume the loan if I bring her taxes current and pay the realtor. So here’s what it looks like.
My total investment would be:
$55,125.84 loan balance
$ 2,271.64 back taxes
$ 3,000.00 reator’s commision
$ 350.00 title exam
$ 200.00 recording fee
$ 75.00 document prep
$ 125.00 closing fee
My total out-of-pocket is:
$2,271.64 back taxes
$1,000.00 first payment to realtor
$ 690.00 closing costs
The house is in decent shape, but interior needs to be painted, siding needs to be washed, and carpets could be ok with a little shampoo.
Now what should I do with it and how? Rents are very low here. Market rent is $450. I’ve rented a similar house for $525. It would really be pushing it to get enough rent to even get a break-even cash flow. I need cash. Can I make any with this or should I walk? Could I sell it owner financing if the bank will not allow another assumption? I’m new and need some advice here.