Direct Mail Deal / Subject To - Need Advice

[Eric Severson]

Thanks in Advance BP but I need help. I did my first direct mail to pre-foreclosures and got a highly motivated lead. The seller is onboard for subject to. My dilemma is their current loan structure which was modified 6 years ago to a 40 year. At first I thought the mortgage had 14 years left which would have had tremendous monthly prinicpal pay down. It actually has 34 years left and the principal pay down is $60 per month (rounded up) at 6%. Looks like no balloon at the end as a result of modification. Market is super strong B+ where Plainfield has A+ areas so there should be long term appreciation and rent increase with time. My gut instinct tells me one thing so I am seeking opinions and advise. My strategy is long term buy and hold and tax adantages.

The Deal:

ARV - $130,000

Balance - $78,832.50

Reinstatement - $15,705.45

Repairs needed (hopefully kind of mild hoarder scenario) - $10,000

Monthly Payment - $605.74

Market rents -$1250-$1300

HOA - $35/month

Tremendous monthly cash flow opportunity. One major long term repair will be the roof. 2001 build and is original. I have the cash available for the reinstatement and repairs.