Possible Rental with Creative Financing
Hello BP,
I was interested in seeing if this deal is worth pursuing considering it is a Subject To and will be very minimal out of pocket expenses.
The home is a 4x2. Rent is going to be a minimum $1200, but I am pretty sure that we will rent if for $1250. Monthly PITI is $925, with 10% towards vacancy/repairs total monthly goes to 1050. Guesstimating $200 monthly cash flow.
Loan is for $143k and ARV at $150k, so only $7k in equity to start.
Home was flipped in 2012 as it is from the late 60's. Backyard is only dirt and dog poop with quite the slope upwards on back half of backyard, should probably be xeroscaped come summer. But, only needs pooped picked up as of right now. Then grease fire got on ceiling above stove for about 7sqft, only repaint needed, 2x2 piece of drywall needed to cover bottom side of airduct in basement. Then this guy is ready to lease.
Then I am guessing only 2k-3k for repairs and acquisition costs as I get a discount working for a title company as my W-2.
So with only 2k-3k out of pocket would this be a deal worth pursuing on a Subject To basis?
Appreciate all of your time and consideration,