How to get the most $$ out - Posted by tt

Posted by James Harris on July 16, 2002 at 24:13:57:

How about this; An 80% cash out refi., about $152000. Pay off 1st mortgage of $124000. $28000 left over. Sell the property on a lease option for $190000 with an option consideration of 5% or $9500. Monthly payments would be about $1900. 1% of the purchase price, or find out what the fair market rent is. Hope this gives you some ideas.

How to get the most $$ out - Posted by tt

Posted by tt on July 15, 2002 at 23:50:59:

Just purchased a property, $124 000, comps after some light fix-up(paint, minor landscaping, some interior ceiling) will go in this market for $170 000 minimum.

I’d like to get closer to $190 000 and at least $40 000 out of the deal. Why these numbers? Mainly, I used partners to get the property and would like to return them their investment and a little extra right away. I’m open to cash flow and $$ at close. We are all in for $32 000 between us, with a 1st mortgage at $86 500. (got some Cash back at close)

Question 1: Should I sell on a L/O? I have never heard of an Option Deposit this high? Is it possible? Should I do a Land Contract? If so, what are my risks? Could I get this much down?

Question 2: I guess I could take out a second on it (my mortgage broker is already with a lender who has $12 000 at 12%.) I want to keep my payments as low as possible. Is this a good idea?

Question 3: Should I just do some more serious clean-up and sell traditionally and take todays market price?

Any creative ideas are welcomed. I guess my exit strategy should have been more clear before purchasing.