Refinance to Seller Finance

2 Replies

I have an opportunity I need some feedback on BP. I have a lead on a single Fam that would make a great rental. It's a 3/2 in a C+ neighborhood. The seller owes 52K. The ARV is between 75K-85K. The house is good condition, maybe a couple grand to get a occupancy permit, rent for $800

The seller is open to seller finance (very motivated). Im thinking I could do a subject-2 (need info on the due on sale clause) but the seller's mortgage is 623/mo with an 11%. Now the seller mentioned she could refinance for a much lower payment.

Can I still do the subject to after a refinance?do the numbers support it?

The seller's mortgage isn't really your issue, if you negotiate 4.5% with the seller with a payment of $450, then you pay $450 and they are responsible for the rest.  If I was that seller I wouldn't take that deal.  So, there isn't really and difference between the seller's old mortgage, or a new re-financed mortgage.  The only difference is what the seller pays out each month on the mortgage and what they keep.

I would want to make sure that the seller gets enough to cover their note & keep some cash to make the deal worth it for them.

Just my thoughts.

Best of luck

The seller wants to move badly, very motivated. She only wants what she owes. I would consider subject-to financing if her mortgage payment was lower . I thought if she refinanced and got a lower payment., I could do the deal.

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