Asumming loans or structuring under a rent to own?

Question

This is my first deal outside of a house that I rent that I lived in for 5 years first, so please forgive my lack of knowledge.  Also I apologize for not using the search function more comprehensively, but I am limited on time.

From what I have gathered, loans can no longer be assumed under the table because of Dodd Frank?  If so, can I refi into my name with seller approval and give a cash out or have the seller refi and take over under a rent to own type structure also with a cash out?  I need the property to rent at the current equity amount to work.

Rory Compton · Answer

Thanks for deciphering through my gibberish.

Value today - 185k

Existing Financing - purchased in 2010, 3.5% interest, 151k left on the loan

She wants to get rid of the house, she just got pregnant and eloped.

I want $200 a month using property management.

I thought about it after I posted it, I do not own it.  I could probably get her to sell it to me at the current loan value, 151k, and give her cash on the side.  What is an rofr?  Once again, thanks for dealing with my inexperience and helping me out.

Brian Gibbons · Answer

@Rory Compton

This is confusing.

Tell me.

1. Value today

2. Existing financing

3. What does the seller want?

4. What do you want?

Refi into your name?  You have to own it first.  Do you own it?

Seller-owner can refi and then rent to you with a rofr or a rental lease w an option to buy.  Seller's cash out is tax free of income tax as it is a loan.  Interest is tax deductible.

I need the property to rent at the current equity amount to work??  Give me numbers.