Subject To Deal w/ Land Contract?
I’m working on a deal for a 2 apartment commercial property (office conversion). Seller is asking $68K and owes $67K. The property is assessed at $82K and would likely appraise at $90K+. Both units are rented and gross $1600 together monthly. Seller just had 2 new furnaces and hot water tanks installed. Roof is only 5 years old and the electric was updated in 2002. The mortgage is in his daughter’s name and she wants to buy a house with her fiancé soon. He thinks she needs to sell so the debt won’t affect her debt-to-income ratio when applying for financing.
My idea is to take over the payments on the existing mortgage and also use an installment land contract to supplement the daughter’s income enough that it will negate the debt when she applies for a new mortgage. Does this sound plausible to anyone else or am I making things up again?
I know there will probably be questions, so I’ll reserve some potentially useless details for now. Thanks for your help.