Quit claiming to flip
Hi everyone!
I'm looking to get started investing and I have some cash to do it. I'm interested in a home I found through an agent at a Meetup and I think it has some potential.
I'm still running through the numbers but I think it's going to be a narrow window for profitability. It needs carpet and a few patches in drywall. nothing too major other than the driveway and front porch have settled a little so I may need to do some concrete work. other than that pretty much three to four months job I think.
The property is listed at $365,000. based off comps from two different agents the arv would be about $410,000. I'm thinking about $35,000 or so for repairs.
I may be able to get into the place cheaper if the seller quit claims the deed to me.
He owes $330,000 on the home and needs $26,000 to become current. Then I would be making his $2000/m mortgage while doing the repairs.
The home also has an $11,000 lien against it but the agent is supposed to talk to them about a settlement.
Obviously the cost of the home is the same either way but I wouldn't have to put down the 20% down payment to purchase the property. I could do everything with the cash I have now, I think.
I don't know much about the quit claim deed process or how this can get me into trouble. I this process common? Any Horror/ success stories to a similar situation?
Thanks,
Gabriel