Hoping some people here have some ideas on what I can do to get a deal done. Here is the scenario. What I am trying to do is get this done without taking cash out of my own pocket or going through a traditional bank because they are not willing to work with me.
I've got a property that I am able to put under contract today for 45 days (Property 4). The property is a 3 unit home. Unit 1 would rent for approximately $1000mo but my plan is to live in this unit.
Unit 2 is currently vacant and will rent for $750mo. In my area it should rent pretty quickly at that price.
Unit 3 is currently rented at $575mo and has been by the same tenant for 5 years.
The purchase price will be 90k and the house has a value of approximately 110k the way it sits.
The house I currently live in (Property 1) would become a rental as I am moving in to the 3 unit. That house has a mortgage balance of approximately 60k and a value of 100k. The rent on that property will be $1100-1200mo and the mortgage is $650 with escrows included.
In addition I own a home that is free and clear (Property 2) and currently rented at $800mo with an approximate value of 60-70k
My father also owns a rental property (Property 3) in the area that he is tired of dealing with and is looking to be done with. He is willing to sell it to me for the mortgage balance + 20k. That property has a mortgage balance of around 47k and a value of 70-80k. The house has a long term tenant and rents for $800mo right now.
I'm able to give much more detailed figures regarding taxes, insurance etc if need be.
Any help would be greatly appreciated, I have some ideas but I'm just trying to get a few more before I pull the trigger on this PA and start tossing down EMD's and appraisal fees.
Study purchasing subject to existing financing, and notes.
Go up to BiggerPockets and search "sub2 brian gibbons"
I've written many posts about that.
I'm familiar with subject to but that is not going to help me with a short sale property which is what I'm dealing with. Thanks though.