Help me figure this out
A family member of mine owns a house, she owes 94k on the mortgage and it is worth 70k currently. She doesn't want to be a landlord so she is letting other family members rent the property for 1/2 her mortgage payment. ($500) She pays 1000 for everything each month. Her plan is to pay it down until she can sell it. Remind you she is losing $500 each month. I talked to her about fixing up the property and getting a property mgt company To take care of the land lording part. That way she could get $800 - 850 for rent. I don't think she liked that idea because she didn't want to put more money in the property and deal with something she didn't understand. She cant do a short sale because she can afford the house. My main focus is to help her out but if there is a way I can get a rental property out of this it would be a win win. Could she maybe refinance to get the payments lower then lease option it to me, then in turn I lease it to someone else ? She has bad credit btw. Can anyone help?
Figures
Mortgage 94k
Interest 7%
18 year left on loan
Pni/taxes/ins 1000 month
Rent receiving each month $500
Rental rate about $950
Estimated repair costs 4 or 5k to get it rented just a quick guess here