Please analize this deal
Hello,
Trying to figure out how to take down this deal and I'm looking at a Subject to plan.
FSBO property. I know they want out to move and make a little profit. House next door has been rehabed and is for sale, so they know how they compare and are in a rough spot.
Original Mortgage was ~$95K and they are 5 years into it 5.25% interest rate. Monthly payments are $800.
Looks like it needs about $15K in rehab and they would need about $10k cash to walk away. ARV would be $125-130 with neighborhood improving.
I could rent it for ~$1200 or lease option it @8% for a 2.75% spread.
Good deal or bust?