I had someone call in and ask me to buy her house from her, and that she would like to rent it back after I purchase it. (bad idea) The houses in that area don't appreciate at all, so this would be a buy and hold for myself, or I could assign the contract to someone. However, I'm wondering if there is another way of taking down the property that I'm not thinking about. Any information would be helpful.
Property 4/2/2 in Killeen TX
Worth 130k from County tax site
Going to Foreclosure on June 5th
How long has she had it? Are you going to assume payments? Or are you having to bring cash to the table? If so, how much. Ask the bank what it will take to get the loan current and see if you can work an angle there. If there is reasonable cash flow and she is willing to forfeit any equity or you will not be in it too much, I would say buy and hold. Especially if she wants to stay. Property will always appreciate. Maybe not at the rate we would like and if for no other reason than inflation. If you cash flow $250/mo over 20years you’ve made $60k for a presumably low investment. Sounds like there is a deal there. You just gotta flush it out.
She purchased the property on 7/28/2016 so I can't expect that to much of the price has been paid down. I would like to take over payments as as sub2 deal. But how would I work that out with her?
Michael, I know this isn’t answering your question but how do you get in touch with people like that? Just curious how you were approached by someone with this proposal.
I had my real estate agent send me the information, because she knows I buy houses for cash. You can also send out yellow letters to people.
@Michael Mullins Assuming that you lease it back to the owner (now tenant) and that you end up evicting them, you can get in trouble. If they sue you , it might be considered equity skimming. Plus it's just way too much risk for a deal that only has 12 % equity.
Thank you for that information. I think your right about that.