Updated almost 14 years ago on . Most recent reply
Would you do a master lease option on a property thats going to be foreclosed on??
In today's climate foreclosures are taking a years to initiate. I have a seller who is underwater and has tenants that are no paying rent. My question is, should I step in and make money off this property until it goes in to foreclosure? This is a 4unit building that could generate 4k a month in rents.
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#3 Real Estate Deal Analysis & Advice Contributor
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- Mercer Island, WA
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
My question was same a Jamie. What's it going to take, timewise, to get this current. I can see you taking a lot of time and some money (make ready costs, if nothing else) to get it current.
Even if you do get it current, you're still underwater. I guess that could be OK if "underwater" still meant a very low price and this thing would spin off cash even with the current loan payments. It would have to be some pretty spectualr numbers, though, to generate $4K a month. You'd have to be talking $2000/unit/month in gross rents, plus double your per unit P&I payment.