Acquiring Friend's Home
My friend wants to get rid of his mortgage in Chandler, Arizona, but stay in the home. I suggested a subject to deal where I take over his mortgage and also keep him in the home as a tenant. Is anyone in AZ familiar with doing a subject to and able to offer advice? Thanks.
Wouldn't you have to charge him MORE than his mortgage to cashflow? (unless your strictly just after the equity)
Why does he want out of the mortgage? If it is because he is paying too much, he should see if he has enough equity to refinance. If the same mortgage is kept on the house, I agree with Ryan... if he passes the mortgage off, the payment will only go up, not down.
Yes, I'm after the equity - his motivation is to leave after he's finished his degree which will be in 1 year. He wants the freedom to leave and won't consider renting it out if he moves to another state. After his departure I can charge more to new tenants and cash flow.
Never rent to family and friends? Spare me.
So it doesn't have to be a subject to, but a creative solution with no or low money down is what is needed. Any suggestions?
Sub to is a very simple transaction but I haven't done any since I left Minnesota so I know my paperwork would not be good in Arizona today. You just need to make sure you have good paperwork. Search BP for Sub to or Sub2 and I'm sure you'll find someone with resources. I can give you a couple of names, people I know in AZ who do Sub To,