Independence, MO · Member since 2018 · 11 posts · 4 votes
I have a friend of a friend type situation that owes $7,000 in back taxes on a house that is paid off. They can not afford to pay the taxes. The house needs roughly $10,000 worth of repairs. The ARV would be around $100k.
Would there ever be a situation where they sell me the house for $1.00, I pay the taxes and fix it up, then we sell it and split the profit?
This is possible. Normally the taxes need to be paid before the property is sold, so this would be done at the closing. It would be much cleaner to purchase the house for say $30k-40k plus the back taxes and keep all the profits from the flip. You could do seller financing with a 12 month term and use the back taxes as the down payment.