Hello BP Family!
I have come across a Subject to deal in Charlotte it is an off market property built in 1983 3 bedroom 2 bath 1350 sq ft. Zestimate shows the price as $152,000
they have $95000 left on mortgage and are asking $30,000. Their interest rate is $4%. I need help with analyzing this deal-is it a good deal or should I let it go.
It is currently rented at $1300/mo until March'18.
I searched the recently sold homes in that area with comparable square footage/aged homes have sold between $120-$150k
This is my first time working with a subject to property and need help.
Any input will be greatly appreciated. Thank You!
If I'm understanding, you're saying you're interested in the property but the deal is contingent on another deal going through (ie: for them another purchase or something?)
We did just one of those. I think it comes down to what else you have on the table, and if you can afford to possibly wait/absorb the risk of a deal not going through.
Jim the owners have this property as an investment property and are looking to get rid of it as tired landlords.
Thank you for your input!
So are you thinking of paying them 30k and then taking the property sub 2 the 95k mortgage? If so, do you plan on keeping it as a rental or flipping the house? If you plan on flipping, you'll need a better estimate of value, 30k spread is pretty big at 120 to 150k.
If you'd keep it to rent you need to run the analysis of buy and hold and roi with that. I'd need more information to give definitive feedback.
Thanks Donald, I passed on the offer to a friend he got the property subject to the same terms andwill be renting the property for $1400/month.
Thanks for your help!
That's good to hear Bianca. Why did you give it to your friend or was that always the plan? Glad to see it worked out, I'm planning on getting into sub2 soon.
Mind sharing specifics? How much did your friend give the seller, did he assume or sub2, payments?
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