Posted by Heather -Tx on September 19, 2003 at 21:11:28:
In this instance you could take over their loan (Type sub2 in the search fields and you’ll find a wealth of info on how to do that) And then either come up with the 10K in cash, or have them take a second on the home for the 10K
If you were looking to hold it for a longterm rental, then make sure that the rents would cover all expenses, with at the very least $100 monthly cash flow.
Or you could lease option it out (again just type L/O in the search field above ) And collect a nice option consideration up front… and collect a little above market rents since they would be looking to purchase the property at a later date.
I myself do not do these types of deals, I prefer buying at much bigger discounts for all cash (Rehabs yeah!) But alot of people tell me how wonderful the L/O are. I did take over a home sub2 though, rehabbed it and resold, this could be another option.
You have to decide first what your exit will be… do you need fast cash ? Or are you looking to buy and hold for the long term. Figure out your needs and then search here for which of those needs fits… and learn how to do it very well.