I potentially have my first wholesale deal and I need some advice. A motivated seller contacted me from the state of Rhode Island and he needs to get rid of his house. I spoke with him on the phone and here are the details.
The property is a 2 unit mixed use property. The owner lives in the unit upstairs and the bottom unit is a commercial property that is vacant. The owner owes about 36K on the mortgage and his mortgage is current. His mortgage payment is 550 per month and he also pays 100 dollars a month to Rhode Island housing for paying his back taxes of 12K.
The owner said the property was valued at 180K, but after doing some research on comparables in the neighborhood I convinced him its only worth 134K (ARV). The owner says the downstairs unit needs some work. So in a nutshell the owner wants the following:
36K to pay off his mortgage
12K to pay off Rhode Island Housing
20K to walk away from the property
68K total to sell the property to a cash buyer and walk away (mortgage, RI housing payoff and 20K to pocket)
How can I structure this deal to work? Any advice? Ideas? Any help would be appreciated
Just for the benefit of future site searchers, I responded to this question over at http://www.biggerpockets.com/forums/517/topics/125278-first-potential-wholesaling-deal-need-advice
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