Originally posted by @Clifford Still :
My in laws have a house that they are planning to let go to foreclosure, my suggestion was a subject to deal. I would offer cash for the rent to relocate, but the house is worth 160k arv and 145 is owed on the house. Is this even worth entertaining as far as a rental property?
Offer your in-laws to bring the loan current, then to start making the payments. You don't need to involve the bank (if you do, it will kill the deal) but you do need a purchase and sale agreement with your in-laws & to do the transaction through escrow and use a title report. It will get you a house and save their credit and keep the bank happy. It's a Win Win Win!
Sounds like a short sale. The question is what is it worth as-is. Does it make sense financailly to reinstate and keep the property with the current amount owed vs what it is currently worth?
Do you think it will make sense if one of my partners were to move in and then sublease the other rooms out to pay the rent while we fix up the rest of the house to get it ready to possibly sale or rent out as a whole?