I received a call from my direct mail campaign from a out of town owner that has a SFR currently rented out for another 9 months. He is a R.E. investor with 5 total properties and is willing to sell this property so that he can use the cash from the transaction to purchase one or two more rentals closer to where he lives. COMPS on this property are around $125,000 and two other homes in the neighborhood currently are listed as for rent for $1100 and $1200. The owner owes $40,000 on the property and wanted to wait 9 months for the lease to expire before selling.
My question: Since the owner is looking to get some cash out of the deal and most likely not motivated to do the seller financing route, should I just jump on this deal ( if the numbers work) and go the traditional financing route or try to get this property under contract for under $100k and wholesale it? What other options do I have besides seller financing, Hard Money Lenders or bank financing?
I only have a couple thousand to put into this deal and have a co-worker with $25k who is looking to get into real estate and would be up for a JV.
Thank you in advance for your insight and help!
If you bought it for 25k you and your partner would have enough for the D.P. using bank financing.
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