I have a seller with a well maintained 3/2 house with no A/C in a C neighborhood. Seller has very little equity. 52K mortgage on a house worth 60K. The seller is older and wants to downsize and move to a duplex. She only wants what she owes or for someone to take over the $623 payment. $138 principle, $485 interest (she showed me the bill). He mortgage has an 11% rate.
She's currently refinancing to get a lower payment. She's open to lease option or subject to for the new mortgage payment. My strategy is to hold it as a rental.The house will rent for $800 or $900.
I'm just not sure how I should structure the deal. Lease option or subject to? I'm concerned about the due on sale clause but i do want interest in the property.....looking for some good feedback BP
ok, on paper it looks good, see attached calculations I made. I put in 1000 property taxes and 600 insurance. I don't know your real numbers there. I am concerned about C class asset and the vacancy (I planned for 15% which is usually low for C class). If you PM me a property address I can give you a much better insight into it.
As for structure, buy the property and rent it back to her. Sound and clean.
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