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.
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?
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