Hi Jay, the monthly payment for mortgage is $311.31 , I dont have more information about it. Regarding numbers, since end buyer will pay off the mortgage that owner owes $40K plus what he's asking $48k, where ARV is about $53 only. I don't have acces yet to BP calculator. It looks like end buyer pays more than what property value is.
Thank you Jason!
There are a couple angles here.
The monthly rent is currently $550 - but what is that the market rent? What kind of lease is the person on? What are the taxes?
Are you trying to do a no-money down deal and/or is this your first possible deal?
Hi Mark!, this is going to be a possible first deal. I just got escrow account of 91.19( dont have exact tax and ins mount). $331 is the total monthly mortgage pmt including escrow.
Howdy @Janice Delantes
Let me try to answer your initial question about the Asking price $48K versus the ARV $53K. The end buyer is actually paying lower than current value (ARV) if that number is correct. The seller would basically receive $8K in cash from the sell. $48K - $40K existing loan = $8K. You need to determine the possible loan terms you would get and the P&I for a new mortgage. As an example: $48,000 - $9,600 (20% Down payment) = $38,400 loan amount @ 5%APR/30 years = $406 P&I payment. As @Jason D. suggested you would need a higher rent rate to accommodate the increased mortgage payment. Have you researched the market rental rates for the area? Is $550 within those rates? Is there room to increase? If not this is a no go to me.
I greatly appreciate your information. It’s very helpful. Thank you!