Hey Pros, can I make this a deal? - Posted by Mel FL
Posted by Mel FL on June 13, 2000 at 22:26:11:
Im looking for a little insight on how to approach this property. Seems like it might be a deal, but Im not sure how exactly to approach it.
Comps say the property is worth about 75K maybe 80 on a L/O.
First mort. for 46K has high Int.(about 10%)and a 2000 pre pmt. penalty. Mo.Pmt is $444.34(P+I only)
Second is a line of credit, 20K W/ 300 mo. pmt.
Insurance is 350 per year, and taxes is aprox $1000
The house is newly rentavated but doesnt have CH/A. Its in a pretty sellable area, and a nice little house. But will rent for only about $700 per mo.
These are the offers that came to my mind.
First I could offer to L/O it, as long as he will feed about $100-150 per mo. so that rent would be low enough for me to make a spread. The problem with this is that #1 I dont know if he would do that. And #2 that line of credit scares me, he could keep spending and not have any equity.
Second is to ask him to use the line of credit to put in CH/A then Refi. Then L/O and pay his new lower pmt. Im not sure if he’s going to be happy about that either.
This guy isn’t desperate, he just wants to sell before he goes to boot camp in a month. He has also talked to a prop. mgt. co. and has considered it even though he would have negative cash flow plus repairs.
So my Question is, What way would be the best to go? Or does anyone have any suggestions for another aproach?