Posted by JoeB(Atlanta) on February 09, 2000 at 22:14:45:
Tell us lots more, so we can give some constructive suggestions.
Why does he want to sell (besides being upside down on his cash flow)? Does house need fixup? Is $2000 the fair market rent, or could you get more? Is he behind in pmts? What are your plans for house (rental, LO, flip…)?
Joe Brillante
How would you structure this deal? - Posted by Swaas
Posted by Swaas on February 09, 2000 at 22:06:40:
Comps in the area sell for around $265k. I owner has a $220 existing loan. The owner does not need the cash and is willing to finance. The house is currently being rented for $2000 per month. The owners current monthly mortage is $2100. How offer would you suggest?
Thank you.
Re: How would you structure this deal? - Posted by Jim Pasquini
Posted by Jim Pasquini on February 09, 2000 at 23:02:52:
I see PACTrust written all over this one. Renter is currently paying $2k per month with no tax relief. Effective equivalent mortgage payment on this is roughly $3K when tax deductions are taken into consideration. Looking at this you could get the renter to assume all the costs of the property, possibly lower his monthly rent and still build yourself in a positive cash flow. I’d consult Bill Gatten on this one if I were you.
Re: How would you structure this deal? - Posted by Sean Cowdrey (CA)
Posted by Sean Cowdrey (CA) on February 09, 2000 at 22:16:53:
$2100 monthly payment on a $220K mortgage? That’s around 11%, assuming a 30 yr. amortization! I wouldn’t want to assume, take subject to or wrap that one for any length of time. If you could get new financing at a more reasonable interest rate, it looks like you’d have a positive cashflow at $2000/month rent. I’ll be interested to see what other people here suggest.