Time sensitive - about to meet with a seller at 7:30 EST

1 Reply

Hi all,

Potential motivated seller but I am not sure if I am looking at this situation correctly.

Property A - the seller want to sell for $339k

Property B - the owner/seller of Property A is in foreclosure and needs the contract $339k on Prop A to stop foreclosure and eventually move into Property B.

The $339k is decent for the neighborhood but not slam dunk investor's price. Comps in the are that are $400k - $430k range.

The seller is open to seller financing on property A but with $139k down! - no can do on that kind of cash... probably they want to use it to stop the foreclosure on Property B.

Question1: is there anything I can do creatively to solve the problem of seller's foreclosure of Property B and get a better discount on Property A?

Question2: if I were to buy this at $339k as my primary residence using FHA should I be concerned that the payments are $100 -$200 more than rent in that area?

Question3: Is it worth it to try flipping it for that close of a range?

Thanks in advance.

Hi all,

update after meeting with seller:

Property A: has a 140k line on it. the location in in A class neighborhood

Property B:  upside down and behind on payments is in B - C class neighborhood

I am thinking I would focus on Property A and take over the $140k line of credit which just switched from interest only to amortized and make payments on the rest of the amount which is $199k. May be $900 a month for 5 years and then a balloon payment?

Thanks

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