Posted by Reif on April 10, 1999 at 23:22:13:
I agree with Mike. The noteholder would be my first choice.
If no luck there . . .
Your rents ($1100 best case) only give you $100 positive before fixing the faucets. Not sure that it’s enough.
So . . .
One question is - what’s FMV?
Next - if $100/month is enough, will she let you take over the payments?
If not, and you can’t get a discount off the noteholder, how about getting some equity on a wrap?
My thought is, pay her the exact same amount (719) per month on a longer term loan. See if you could keep the interest rate 7%.
Then say, “Look, I’ll take over your payments, and give you a 80K wrap. So you won’t lose any money, and when I get cashed out, you’ll get all your equity.”
Play with the numbers. Higher price, longer term. Lower interest rate, shorter term.
Then maybe sell it with 10-20% down owner finance on a re-wrap at 8%.
I don’t know - the only problem is you still have skinny cash flow - and so will anyone who you try to sell it to.
But maybe someone will like a low down deal, even with a small negative. I did it once