Buying a property below market value
If I buy a house below market value, would that affect the future value of the house? Let's say a home owner wants to sell a house and is willing to sell it for the remainder of loan. Ex. He bought the house with a $90,000 mortgage and after making payments for a several months now there is a remaining balance of $83,000 on the loan. If I get a loan for the $83,000 to pay off the loan, would that have any negative implications on this property in the future? This is assuming the seller is willing to give up any profits from the sale. What are the benefits/cons of a deal like this? This is assuming the property is in good condition, no major capital expenses at the time of the sale.
Most Popular Reply
You make your money when you buy. What you paid has no effect on future value.