Hi all:
I am looking at my first deal and need some advice. The couple owns a home and is heading toward bankruptcy. They just need 2K to walk away from the home. The current loan has a balance of 186K and the house comps for 205K. The int. rate is at 9% with $1522 PI and 200 TI. The house is in move-in condition.
I am thinking of a L/O for 36 months with 2K down and renting for $1722. I will find a person to buy at $205K outright and collect $19K or wrap L/O with $20K down and sell for $210K in 12 months.
Does this math sound right and does the deal look good?
In addition, what happens when they file bankruptcy?
HomeguyATL