All Forum Posts by: Tyler Sanders

I am working on my very first deal. The owner is willing to deed the property over to me and I pay his mortgage. As I spoke to a closing attorney he warned me about the due on sale clause, which I already knew about. But know that the rubber is on the road, the thought of the mortgage company calling the mortgage due has kind of frightened me. 

Now I am pondering the "lease with the option" strategy. But, with the deed still in the owner's name I don't feel like my investment is secure. Bankruptcy, liens, 2nd mortgages and so forth.

I heard a podcast on bigger pockets of an investor filling a 2nd mortgage on the property he was leasing. From my understanding, he did so to protect the money that he was investing to rehab the home.

If you have expierence in this, I need your advice and wisdom. Thanks!

Thank you guys!

Here is my situation,

4 bed/ 1.5 bath 1300 sqft

Market Value $70,000

FSBO Listing Price $52,500.

Upon reaching out to owner I found out it was a wholesaler listing the property. At first text conversation he said he would take $47,500.

My research shows that the owner owes $2500 in back taxes on the property. Wholesaler said the owner is open to seller financing but he still has a $44,500 mortgage on the property.

Estimated Rehab Cost is $12,000

Rent in the area for equivalent houses is $800 per month.

Deal or No Deal

If I assumed the owners loan what questions should I have answered before pursuing?

Here is my situation,

4 bed/ 1.5 bath  1300 sqft

Market Value $70,000

FSBO Listing Price $52,500.

Upon reaching out to owner I found out it was a wholesaler listing the property. At first text conversation he said he would take $47,500. 

My research shows that the owner owes $2500 in back taxes on the property. Wholesaler said the owner is open to seller financing but he still has a $44,500 mortgage on the property.

Estimated Rehab Cost is $12,000

Rent in the area for equivalent houses is $800 per month.

Deal or No Deal

If I assumed the owners loan what questions should I have answered before pursuing?

Thank you for all the help. I will put it into action. I do not plan to put an offer on the house until I know how much it could rent for, this why I wanted to ask the BP community first. I used the wrong wording in forming my question. Again, Thanks for the help.

I am going to put an offer on my first investment property and I am not sure how much to charge for rent. Is there a good resource to find out what other investors are charging for rent? Thank you for any help.