Possible Subject 2 deal

4 Replies

Hi BP - just looking for some assistance on a possible deal 

I have a possible deal in China Springs TX and need to know the best way to structure it

1. ARV is $230k - Needs 60k in repairs (built in 1976)

2. Owes $120k but the seller wants 30k (150k total offer)

3. Mortgage - p.i.t.i. $1,100

4. Rents -1,400

4. Wants $0 down 

I would like to take the property over using Sub-2 then possibly sell it on a lease purchase for $175k with a $15k option fee.

Is this the correct strategy to use? Any suggestions would be appreciated.

Thanks in advance! 

Originally posted by @Von Dionne :

Hi BP - just looking for some assistance on a possible deal 

I have a possible deal in China Springs TX and need to know the best way to structure it

1. ARV is $230k - Needs 60k in repairs (built in 1976)

2. Owes $120k but the seller wants 30k (150k total offer)

3. Mortgage - p.i.t.i. $1,100

4. Rents -1,400

4. Wants $0 down 

I would like to take the property over using Sub-2 then possibly sell it on a lease purchase for $175k with a $15k option fee.

Is this the correct strategy to use? Any suggestions would be appreciated.

Thanks in advance! 

 Question, whats a 15k option fee?

Zero down Is the most interesting part.

You can review the reno, but is a tough one.

210 will be tied up in a property worth 230.  

Does the PITI include the additional 60k in reno? or the 30k to the owner?

If it does not, post reno the cashflow is going be be close to zero or you are putting up 90k in cash.  

You will have to sell it retail.  After transaction fees, I think you will be under water.

PASS on this one!