I have a lead on a property that i have an appointment to look at tomorrow that the owner owns through a hard money loan my best guess is flip attempt gone bad. Here is some of the nitty gritty from what i have found as well as per my conversation with the owner. The house is 3bd 2bath. 1800sqft. it is in kind of a weird place as it sits in a row of about three houses between two large apartment complexes on a side street. I figure it would make a good rental property not so much a Retail buyer. Now the comps in the area on the low end i put it at 180k and high would be 220k. I get this because there is no comps in the area with quite the same location scenario and the closest comps sold for 200 - 225 but had significantly less sq footage. like 6-800 less. I am kind of figuring my numbers around the middle of the road at 200k. So in talking to the owner he was interested in doing some type of owner financing and that is initially how we made contact. After a few minutes and prying questions i got out of him that he currently owes 100k in hard money and has been paying 1100/mo interest only payments. His initial asking price was 170k but he seems pretty motivated to make a deal. I asked if he would be willing to let me look at the property to asses the condition and see if we can work something out.
This is where I get lost. I don't know if there is a way to take over the existing hard money loan. Finish the rehab and that is dependent on how much and what it makes the numbers and then rent and refi. I will also throw in I am brand new and looking for whole sale properties and properties I can take subject to and rent out. This seems to lie somewhere in the middle if i can structure the deal appropriate. I know there is alot more information that i need in order to work the numbers but just trying to see if this is feasible.
Any feed back would be great and lay it on thick I can take a beating if I deserve one.