Short sale strategies
Hello,
I am a new real estate investor from Rhode Island and am hesitant to make a short sale for my first deal. I have extensively tried to see how the property I am looking at would not work financially short term and long term but have not been able to. The property is assessed at around 140k (3Bed/2Bath with 2000Sq ft of living space) and the offer put in is 92k (they were asking 95k) with 2500 in closing costs. We have been approved for a conventional loan with 3% down with mortgage insurance dropping off in 3-5 years so will bring my our total monthly payments (including everything) down to $750-800 a month. renting it out in a few years we should have even more equity and be able to cash flow about $400-500 a month or sell to make a great profit. Looking at exit strategies it seems we would be in a pretty good position to sell, lease to own, or rent in 1-3 years when we purchase another property. The neighborhood is good with much higher priced houses selling frequently as well. Any advice/tips on this deal? There is no rehab required and is completely move in ready. We are sick of renting and getting nowhere so this property seems perfect for the time being and will allow us multiple options to cash out on the deal later on and fuel future deals. Are we missing anything? Any advice on additional things to look for? I have checked property records ( house was built in 1960) and everything else I legally could and nothing out of the ordinary has come up. At this point we are waiting for the bank to accept the offer.
Thank You
Timothy