Posted by Bud Branstetter on June 06, 2000 at 16:14:01:
The reason you could probably L/O them is because they are rentals that do need work. They may well not be the higher end house that you can depend on a good tenant that makes their payment. Legrand has learned as most of us others that when you go under the 75-80% of the average priced house you have more trouble. Not that it can not work, it just may be more problems.
Try to find out the underlying financing and learn to take that over subject to. You then control and feel that your investment is safer. The TB you put in there should be able to refi and pay you your profit and the original owner their deferred equity. I like to buy $3 for every $1 I spend. So in your case if you rehab you want to be sure there is 15-20K of equity.