sub2/refinance - Posted by Gerald-DC
Posted by Gerald-DC on February 18, 2002 at 18:55:51:
I have a seller who has a property that is rented on a month to month and is receiving a positive cash flow of $300.00 per month from a Section 8 tenant. The seller has a note of 64K and the FMV of the property is 90K.
The seller has four other properties and he is trying to sell all of them. He is a tired landlord and if this deal makes sense, I can probally acquire his entire portfolio using the same formula for each of the remaining houses.
The deal that we have agreed on pending inspection of the property is for for a sales price of 69K with 5K to the seller in cash, and I would take ownership of the prop sub2 the existing loan in the amount of 64K.
My plan is to continue to rent out the property for another six months, then refinance and get my 5K back plus another 20K in equity out tax free and then keep the property for my rental portfolio or sell it retail or owner financing.
Any thoughts, cautions, suggestions or comments will be appreciated.