I have a seller who is in dire need for a deal. He has a 1st and 2nd on the home now with the same lender. My thoughts are to take over the 1st clean up and rent the home 1st pmt is $750 p&i. Would rent for $1,000 to $1,100 a month. Let him resume pmts on the 2nd of $240.00. Doing it this way would save him from a forclosure and let me get control of property with little to no down. and possible cash flow.
1st balance $118,000
2nd balance $ 25,000
Aprox value now $125,000
How do i protect myself?
Would this work?
Exit plan is to hold and rent for income.
How does it play out when i go to refi or sell? With the 2nd?
:help
Thanks again for all the good reading.
Oh and its been vacant for over one year, and he’s been paying on it with no return at all. He’s an out of towner/dont wanter.
No deal here at all unless you want to be a sucker. Move on.
You must walk.
This deal has problem written all over it.
Explain to me again why he would make the payments on the second after the house is yours and no longer his?