Posted by Michael Morrongiello on January 24, 2000 at 15:42:34:
If the asking price is $150K and the owners currently owe $132K in the form of mortgage debt against the property then there really is limited equity here to work with.
Have you determine what the exact amount of debt owed is ? and it it is less than $132K then what the sellers REAL cash needs would be ?
Of course you could see if they would be wiling ot finance you 100% with no money down with some type of wrap around owner financing. This would enable you to put your funds into the property better securing their mortgage.
Another way to consider going is to OPTION the property for the $150K sales price and then master lease the property from them. Do your improvements and then a year of two down the road with the increased value that presumably increased rents would provide you can once again seek to take out the sellers.
Explore some of these possibilities