Would you do this deal? - Posted by Bud Branstetter
Posted by Bud Branstetter on March 16, 2001 at 21:44:54:
This is predicated on you having the funds and taking subject to ( Pactrust of course.)
SFR 4-3-2, 2500 sqft, gated community, 2 yr old
1st Mortgage $136,852 at $ 946.18/mo
2nd Mortgage $ 4,000 at $ 256.14/mo
HOA dues $30/mo
FMV $190,000 reliable comps and the market is hot.
Seller wants to payoff a 401K loan of 20K that was used to pay down the second.
Seller wants 10K net in addition to the 20K. Movers are scheduled, airline tickets are purchased, and job transfer has been requested but not certain.
Seller is not willing to roll over 401K to self directed IRA and loan money back.
Investor is left with buying in for 30K and trying to liquidate immediately or keeping the money invested for cash flow. I would think the 2nd should be paid off if longer term cash flow were wanted