Is there anything we can do with these leads?

Question

I got a call from a tired land lord who is just wanting to get out. Said we literally could just pay what they owe they don't live in town anymore. They over paid on one and owe what is market value on it the other two they did okay on. We were thinking subject 2 but after seeing the #'s I'm not thinking there is anything here. What do you think?

Property One:

2/1 1k sqftMortgage: 64kRent is 770 on section 8Mortgage inc piti: 900

Property Two:

3/2 1052sqftMortgage: 57kRent: 825Mortgage inc piti:540

Property Three:

3/1 864sqftMortgage:41kRent:700Mortgage Inc piti:410

Ryan Dossey · Answer

I don't know that we will be able to refi these right away. We are closing on 2 SFR rentals this month. I haven't mentioned taking over the loans so I don't know how they will take it. They used to be bankers so I could see them not being open to it. But I guess that you don't know till you try.... Keep the advice coming.

Ryan Dossey · Answer

Market Values via mls comps my realtor sent me.

1) Is tricky realtor sent me says range is between 79-121k. Real Avm at 100k. Zillow says its worth 65k (I know I know they are way off) But 100k is higher then I thought....

2)Real avm: 59K

3)Real avm: 55k

1 is on a 15 year fixed at 4.5%

2and3 are in more of a class C area. The kind of place you don't really go to at night. They are on a 30 year fixed at 5%.

Hattie Dizmond · Answer

You didn't specify, but I'm assuming the fair market on 2 and 3 are above the current mortgage balance.  I think I would look into refinancing those 2 to get the cash flow better.  Depending on the market value of #1, you could look at refinancing that one as well.

Rocky V. · Answer

I would definitely look further into properties 2 and 3.  What is current interest rate?  Is it fixed?  How many years left on note?  What are conditions of properties?  Is there any deferred maintenance?