Know a motivated seller, little equity
A buddy of mine has his house on the market and they've had 0 offers in 4 months. He is asking $147,000, which is probably a little high considering the condition of the home. I think it's more like a $135,000 to $140,000 home. It is a late 1940's home and it could definitely use some updating. After speaking with him I found out he owes $131,000. He is more concerned about paying the closing costs and fees than making a ton of money off the property.
I'm just wondering with you experienced investors out there if there is an opportunity of any kind here. I would love to be able to help him and his fiancé move on from this house while also getting a transaction under my belt. I've considered subject-to, but am not sure if I could do anything with it considering the updating it needs, and not sure if he would be willing to hold the loan if they want to purchase a new home. It is still a possibility though, I have never done one but would be willing if it makes sense.
A little about the home: It is a 3/1, 1200 sq ft, has a 1 car detached garage. and a decent sized yard which also could use some work. The neighborhood is good, and is right down the street from the high school.
Is this something worth pursuing in any way or should I just spend my time looking for other deals? Your input is appreciated.