Ways to structure this deal?
Good afternoon, and thanks in advance!
I have been talking to a woman about selling her rundown house to me. The ARV (given to me by a Realtor) is $25-28000 max. From my conversation with the seller, we have calculated the repairs to be around $12-15000. Rents in the area are $550-650 for a 2-bed. The home is free and clear and she just wants out.
At this time, I do not have the funds to fix the property myself as I have a flip going on another property (I hope to post to Success Stories in about 60 days!). So I am looking at either wholesaling this or doing some sort of lease option.
I was going to offer her 2 options - All cash at $7500 and an owner financed option around $11000 ($2500 down with equal payments over the next 10 years...something like that). If I wholesaled the deal, I figure I could wholesale the deal for $10000 or so.
My other thought was to offer a lease option on the sell side as well. However, I don't know that much about them.
Any thoughts or opinions on the deal? Betters ways to structure the buy side or sell side deals?
Thanks again!
Rob Scarborough