Need advice on first premeditated purchase

2 Replies

First time posting.

I'm in the Panama City, fl area. Post Hurricane Michael. I sent out about fifty letters to hand picked homes that looked still in distress 6 months after the storm. I have gotten 5 replies so far. One in particular i am pondering over.  

2 bd 1 bath 1k SQ ft   House is gutted and has new roof and AC in the past 3 months, insulation and sheet rock on site ready to be installed. 

This owner is desperate to get ride of property. She over paid two years ago and a new buyer getting a loan on this type of property would be very difficult. She has filed a lawsuit against contractor who she paid half upfront then they stopped work. 

The only solution I could offer her is to do a "Lean To". I would take over her payments (660 mon 3.2% fixed FHA) and she would sign her deed over to me. I will complete reno and I could easily rent out for 1g Month. Her and her family have already moved away.

But here is the Kicker. She took out an SBA loan on the property post Hurricane that is attached to the property at 25 g. Payments don't start becoming due till December of this year. 260.00 something a month at 2.2% for forever. I haven't asked, but I pretty sure she has burnt through the money already.

Does anyone have any ideas on how to work this deal other than what i've thought of. She owes like 91k and the ARV will be around 120k. I'm a DIY guy and will be doing most of the work myself.

Maybe speak with a local title company re viability of a clear transfer of title in this situation.  I would not know what advice to give you other than that at this time.    

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