BiggerPockets

Ok so here is the deal I am working on. 5.75 % interest rate on an apartment complex that is currently 90% occupied and has a great manager and maintenance staff. He wants me to put down $300,000 and take over his payments. Property is now grossing over $40,000 a month and the payment is just less then 20,000.

The balance is around 1.9 million. and the loan is assumable

To my understanding a TRUE subject two does not require ME to put any money down, but actually he could pay me or simply walk away from the loan correct. How should I approach him about this? I am still doing my research on the property but I would like to take it over only if no cash is needed from me.

it is acceptable to pay cash for a portion of the equity in a Sub2 deal.

My only 2 questions are:
is balanced at 1.9, but what is it worth?

do you have or have access to 300k if in fact there is plenty of equity to justify the 300k

Also I wouldn't pay him any money down if your intentions are to assume the loan.

Good Point, I am looking into the operating expenses now to see what the numbers are.

any updates Natalie?

Hey Guys, sorry for my delay. I have been on the run alot etc. Anyway I did speak to the owner, and the after going over the expenses it seems that there is no cash flow at all, though he was trying to tell me other wise, and kept saying things were picking up etc.

So, that def was a no go, thanks for all your help :)