Wholesaler · Cocoa, FL · Member since 2014 · 34 posts · 3 votes
I had a home owner contact me today about a 4 bed, 2 bath, 1680 sqft home that he is currently renting to long term renters for $1000/month. The location is Merritt Island, FL. The issue is that the home has an upside down home loan balance of $200,000. Totalview has a value estimate of $136,536 and Zillow has an estimate of $120K. The owner desires that the long term renters be allowed to continue to rent. So based on this basic information is there any kind of wholesale deal, etc that might fit this situation?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
There is no deal here. The PITI alone is more than the gross rent, and that far under water there is no practical appreciation play. Advise the owner to try a short sale, with an experienced short sale agent.
Wholesaler · Gladstone, NJ · Member since 2013 · 47 posts · 1 vote
12y
Hi Marc. Could possibly do something with this. Tell me more. Is the loan Fixed Rate or adjustable? Number of years left on the loan? What is the monthly principal and interest payment? What are the annual taxes and insurance? What other monthly costs are paid by landlord?
Wholesaler · Cocoa, FL · Member since 2014 · 34 posts · 3 votes
12y
Thanks Mark for the reply. To be honest I'm starting my real estate business. I can find the tax information but I'm not sure how I could get details on the mortgage situation. The owner is retired and a little elderly so I'm not sure how much more accurate details he can provide. He doesn't even have a computer. Is there a way to find that information out? I'd be happy to do the research and provide the details if we can work out some sort of deal with this property.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
There is no deal here. The PITI alone is more than the gross rent, and that far under water there is no practical appreciation play. Advise the owner to try a short sale, with an experienced short sale agent.
Wholesaler · Gladstone, NJ · Member since 2013 · 47 posts · 1 vote
12y
Marc-
Wayne is mostly right. I have done deals this bad under water before but the chances of making something out of it are slim. It is certainly not a typical deal by any stretch.
However, if you can't even get the details on the mortgage and expenses from the owner, there is definitely nothing to do here but pursue a short sale.
Wholesaler · Cocoa, FL · Member since 2014 · 34 posts · 3 votes
12y
Mark,
The property I told you about in Merritt Island, FL is located at 1350 N Belford Ct. I called the owner and told him I wasn't interested because I couldn't make the numbers work. The owner lives in Unicoi, TN and name is Don Skinner. Feel free to contact him at 423-743-0389. Hope you can make something work for yourself.