Feedback is greatly appreciated!

[Jay Scott]

Hey all, I have the inside track on an off market deal in Southeast Florida.  Here is the 411:

SFH. Owner Occupied. Owner and wife want to stay another 3-4 years. Adamant about that.

Loan Balance (Including 7 months of back payments) - Approxmately $2.2 MM

No NOD filed yet

ARV - $3.6 MM

Only minor updating needed

Wife went through some serious health issues for the past year, but is recovering. While that was happening, his business plummeted while he took care of her, but he is getting it back up and running.

Owner wants to cash out refi.  Cannot do it due to credit score.  Low 500's, and business took a big hit revenue wise

 He would like $500K cash, but I could negotiate that.  $500K would put the overall "all in" at approximately $2.7 MM.  

I am thinking of putting together a Subject To type deal, but I am concerned about the Southeast Florida market over the next 3-4 years.  

I have built strong rapport with the owners, and they would be open to something creative.  

Current PITI is $20K per month at just over 9,375%.

Smaller local bank holds the mortgage.

Any ideas / feedback is welcome.  Thanks!
 

[Dan Deppen]

From the owner's perspective, if he has a failing business why on earth would he want a $20K/mo housing payment, and why would he want to pay 9.3% on $2.2M??? If that was me and I had that much equity I would just sell the property, and buy a $400-500K property with cash (since the credit is crap). Then rebuild the business, rebuild the credit, and then maybe pick up another McMansion later - possibly at lower prices depending on what the Florida market does. Or maybe I'm just a huge wuss and need to learn to live larger.....