Hi All, I am looking for a opinions, suggestions, guidance, and ideas on a potential opportunity. My friend's brother recently got a DUI and lost his driver's license for awhile. He had a house (3 bed/2 bath) in Newport, KY (C to C- neighborhood, but very close to bars and restaurants where young professionals want to be) and the house itself is in good condition with some modern/nicer features. However, he had to move back in with parents and they live about 25-30 minutes from his house.
The house has been vacant and he's thought about putting it on the market, but hasn't yet (still unsure of what he wants to do). He's paying roughly $700 a month in PITI, as well as any other expenses. He thinks the house is worth $105K-115K, and owes ~$80K on the mortgage. I told him to give me a few days to think about it and I'd get back with him.
Looking at comps and the quality of the house I believe it could rent for $900-$1,000 a month. Now keep in mind I dont have a lot of extra capital right now, so my I wanted to try and structure a subject-to with no or little money down.
What would the process for a subject-to look like from start to finish? I've ordered "The Book On Investing in Real Estate with No (and Low) Money Down" but it hasn't arrived yet of course.
Call some attorneys that do closings. Eventually you will get one with the experience and documents you need. Have them structure the deal for you.
Or consider doing a master lease with option. You sign a lease, and sign an option giving you the right to purchase at a set amount sometime in the future and sublet.
There is too much to type here. Call me tomorrow and I can walk you through it all. I wrote more in a similar post here.
Thanks Clay. Sorry for the late response I spent most of the weekend gutting out a friends new 8-unit. If you have time tomorrow I'd greatly appreciate the chance to pick your brain a little.
Also thanks for the link to your previous post it was a great break down!