Posted by JT-IN on July 13, 2007 at 08:38:26:
Definitely have a title search and title insurance, if you were to proceed ahead with this or any other Sub2 purchase.
No difficult to change payee on rents. You would have the seller indemnify any future payments, which they may receive from Sect 8, in additions pro-rating rents from day of closing to end of the month for the month you were to close.
What makes this property worth 17K more this year than last…? Yes, now it has income stream, which it may or may not have had previously. Has the seller indicated that they would sell Sub2…? This method is usually only considered by those who are desperate to sell… If this landlord fits that category, you will want to make certain you understand the whys and wherefores, and make certain you can mitigate whatever the problem and motivation happens to be. You definitely don’t want to step into the owners shoes and be in the same boat that they are in, one year from now. So the loan amt is 70K…? how does that cash flow with the Sect 8 rents, less expenses and mtg pymt…? Seems kind of skinny to me.