subject to purchase

[Catherine Kahle]

I have a probate house that once fixed would sell at $140-145K. There is a mortgage of $88,000. Fix costs would be $15K. Interest/ misc costs to borrow money to fix will be $2,500. Estimated time to fix is 4 weeks. Typical house sale in the area sits avg. 62 days to sell. Heirs just want out and are strapped for cash to keep up the mortgage payments.

I want to purchase subject to and flip. I'd offer $0 down and take the payments over.

$88,000 current lien ($85,660 after I pay four months )

2,340 payments by me to pay lien

15,000 fix costs

3,000 carry costs (interest)

4,200 real estate sales commission

1,855 closing costs (deed prep, excise and transfer tax)

$112,055 total expenses

$140,000 sell price

$27,945 profit

I never purchased this way. Any input will be appreciated. Does this look doable? How would I structure the purchase contract, my borrower needs to be protected too.