Calculations for a short sale with a cash only lien
I'm looking at a property that is in a short sale situation. There appears to be a 2nd mortgage/loan on the property and that 2nd bank wants a specific amount in cash from the buyer (cannot be financed). I'm including this amount in the ROI and ROI + principle calculations. I'm also adjusting 1st years property value percentage based on offer price vs. market value. If I'm looking for cash flow, should I still be shooting for ROI percentages that I would want in a non lien situation to determine my offer price? If not, is there a range that I should be shooting for in property value percentage increase or is there some other calculation(s) that I should look at? Thank you for your time and help. Any input would be appreciated.