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I've got an uncle is having trouble making his mortgage payment. Last year he refin into a variable rate ( I know I know)...He's got really bad credit and now that the subprime has gone to the dogs I was thinking about buying him out and renting to him.

His mortgage is 138,000 and the house appraised for 198,000. I was think about buying him out of his mortgage 138,000 and rent to him for two years and then giving him back his mortgage, but during that time I would take out the equity and buy some multifamily homes.

Now my wife is concern that he wont pay us and we will be stuck with the mortgage - the problem is - he's family how would I kick him out if he did that....

Would you do the deal?

You be surprise...My brother is in grad school and hasn't have a job in his life and was giving a 375,000 mortgage for a condo in Boston....I've been out of college for 7 plus years and worked steady since then I couldn't even borrow that much.

The point is go see what they will give you - it couldn't hurt right?

nice post - so I can't get buy the part where you state buy bigger properties - don't you have to put down at least 10% on commercial properties, so you can't get the loan with out the down payment and closing cost....

Thanks for the advise - especially EZLoanz you gave me a lot to think about.

I really like the property but at the price it just doesn't work. I'm going to do a walk through to see if I want to start negotiations. Thanks to the tax assessor office I know what he paid two years ago.

I would buy this property for 280,000-300,000...But with the all leases being renew before close around market price.

MikeP thanks for the incite...

But if I let the payments cumulate over a year, wouldn't I just be killing my cash flow later on or do you recommend refinance (if the value goes up).

total expenses from last year 10,371 is for the whole building including insurance and taxes. I just added all the expenses from last year to make it easier on here.

This building in on a main street in a downtown area of a up and coming college town. A lot of business are doing well - there are six coffee shops, four bars, and a ton of restaurants. The current store is a either one of those and is doing well. She has stated that she would live if her rent went up, but she could be bluffing.

If I was able to get the a new long term lease sign, then what do you think about the deal.

Thanks

Thanks Mike - It's not a NNN lease, but I could try to get one. What do you think of the deal?

What's does NNN stand for? They have been there for five years and have a strong presents in the community, so I think they would stay. Good question on willing to sign now, could I put that in the sales agreement? No, repairs need, a rehab investor has done all the upgrade last year.

It's mix use. It has a store front (been there for 5 years) and two apartments above. It's a main street in a up and coming town.

asking price is 345,000

Rent Current Market Status
Store 750 1170 Lease till 02/08
2 BR 750 800 Month to Month
4 BR 1300 1300 lease till 10/07
total 2800 3270

total expenses from last year 10,371

total sqft = 5280

let me know what you think...

It's mix use. It has a store front (been there for 5 years) and two apartments above. It's a main street in a up and coming town.

asking price is 345,000

Rent Current Market Status
Store 750 1170 Lease till 02/08
2 BR 750 800 Month to Month
4 BR 1300 1300 lease till 10/07
total 2800 3270

total expenses from last year 10,371

total sqft = 5280

let me know what you think...