Help with my first Subject to/Owner financing deal in Texas
Owner has this property on the market FSBO for 362.5k, he will sell for what he owes 352k. Property is worth 390K. Payments and taxes are current. Mortgage payment is $2,310 PITI No repairs needed. He needs to sell as soon as possible since he is getting relocated for work. Initially he is open to Lease option to buy within 6 months of lease. He doesn't want to pay commissions nor closing cost. House has been 21 days on the market already.
I'am thinking to offer Subject to or owner financing for what he owes. (I understand in Texas you need to own the property to be able to offer a lease option on the exit). I would be asking for at least 3 to 5 years terms with 0 down with a balloon at the end of term.
The exit I am thinking is looking for a Tenant/Buyer asking for a sales price of 390k with 30k down non refundable deposit. 3k worth of rent and a balloon at the end of the term I get?
This would be my very first deal. I would really appreciate thoughts and ideas.
Thank you.