I need assistance in evaluating this subject to deal. This is my first real estate deal and I would like to wholesale this deal for quick cash. I have this house under contract “subject to”. The Seller is behind on payments by over 1 year.
Location: Atlanta, (Decatur) Georgia
Comps: $75,000 to $80,000
Repairs: $5,000 – (cosmetic and replacement of a refrigerator)
Condition: the house has been vacant for over a year. However, the seller lives nearby and goes to the house once in a while to make sure that things are ok.
Amount to pay the bank to make the loan current: $17,000
There is only one loan on the house. No other liens on the house.
The Loan period is 30 years started in June 2011
Principal amount: $107,725.00
Rate of interest 3.25%
Interest type: ARM. Next evaluation of the interest rate will be in September of 2015
Monthly loan payments to the bank: PITI $592.06
Market rent potential: $850 to $900
Sec. 8 rent potential: $950 to $1,000 (section 8 will rent houses on this street)
I do not understand subject to deals completely.
Is there enough meat on the bone for me to wholesale this deal? So that I make cash and the investor makes a decent return.
Thanks in advance.
Meat on the bone? Whoever takes it over would be $60kunder water. There's no deal, unless you did a short sale, which is much harder to wholesale. You need equity, otherwise no scheme will make it a deal.
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