Long Shot

[Daniel Almodovar]

Hey BP Fam,

I know this one is a long shot but I wanted to see what the collective wisdom of BP would have to say about this. I reached out to a seller yesterday and spoke with them today. They seem like a really nice couple who made a purchase at a bad time. They are absentee owners. The SFH is here in VA close to me and they live in Denver. They are upside-down on the home and are willing to pay to get out of it. They've attempted evey avenue to re-finance but can't get any relief without damaging their credit.

So.....that's the back story.  Let's get to the numbers:

House-  3 bed 1 bath, 1123 sq ft

No equity and owe roughly $198,000 on the home.

Monthly Mortgage payment is $1400 and they are paying a portion of it to entice the current renter to stay.  Renter will be leaving 8/1/15.

Comps for this home renting is $1,250

Comps in the area for this home selling are roughly $165,000.

Home inspection completed about three months ago with about $5k of minor repairs.

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I'm under no illusions that this is a good deal, but I wanted to see if there was a possibility of doing something creative to make a win/win for us both. 

My initial thoughts are looking to see if I could get a payment from the couple and acquire the home subject to.  I do have another couple looking to rent to own but I think the $1400 rent is a stretch. However it is a really cute house.

Maybe a Lease option could be effective as well.  Again getting a payment from the couple looking to sell.

Any thoughts would be greatly appreciated! Thanks in advance!

[Brian Gibbons]

@Daniel Almodovar

Comps 160 /

owe 198 

48 grand upside down?

Market rent 1250 / PITI 1400?

Rent it out and pay down $3000 a month 

or short sale.

Options: Do not walk, RUN!  

Find a stronger deal.

You profit on the buy, never get involved with a deal like this.