Updated 3 months ago on . Most recent reply
Wisdom needed potential sub2 deal!
Hello,
I am looking at a potential Sub2 deal and could use some help from the BP community.
Facts:
3 bed 3 bath listed at 410,000
Property is vacant currently as the owner had to move towns to attend to family needs.
Mortgage balance 353,000
Monthly payment 4.125% (PI) ~ 1,700 per listing agent.
Taxes - 105/month
Ins - 164/ month estimated
Projected rent 2400 (2,300-2,500 estimated)
With these figures, this would leave roughly 431 for w/s/T, repairs, capex, maintenance, and vacancy. The house was built in 2006 so I feel repairs will be low compared to average.
How would you approach this deal? My thoughts are to offer to cover his realtors commissions and all closing costs and assume the loan. So I could essentially get into the property for 3% realtor commissions, closing costs, and my lawyers fees for the contract.
If the for a traditional offer at 400k, assuming 10% for the seller to pay both realtor commissions and their closing costs the would net 7k out of the sale. 400K-40k-353K
How would YOU approach this deal?! Thanks in advance!