Posted by JohnWe (NoCA) on February 05, 2000 at 15:43:11:
If you can get the deed, go for it!
Take the property subject to, and wrap it on an ILC for 82,500. I think you and the real estate agent will like these numbers better:
Purchase Price: 67K
Closing Costs: 3K
RE Agent’s Commission (yuck!): $4k
Out of Pocket: $7K
Selling Price: $82,500
Down Payment: $8,250
Owner Carry: $74,250 @ 11% / 30yr
Net Cash Position: $1250
Net Cash Flow: $147.10 / Month for 30 years
Yield: Over Infinite
And no headaches of being a landlord. In addition, you’ll probably have a real estate agent friend for life!
AND if you don’t have $7K – do this. Find a partner, and offer him 25% on his money for one year. He puts up $7K, and he collects $147.10 for one year. At the end of the year, return his $7K, and you can collect on the $147.10 for 29 more years!
Let me know how it goes!