I’ve got a seller that’s underwater. He owes 160K The value is 135-140K He don’t want to walk away and let me do a “Sub To” unless I cough up 5 Grand.
Built in 1986 a 3/2 and it’s a good looking middle income house. His renters pay $1,050 and have a year left on their lease. His payments are $800 I’ll find out if that includes PITI, if it don’t that’s a deal breaker cuz taxes and insurance cud easily be $200 a month. But then in 1 year I know I can sell this house with a 7-10K down payment if I want to.
The house sits in a growing area with a nearby prison & Military base, and this house cud easily rent for $1100 or 1200. The prisoners wont be renting but the guards, nurses, teachers and other personal are some high wage earners.
$5,000 is not going to kill me if I lose it, and I don’t want to keep buying crap that don’t appreciate.
My credit is improving, but I can’t show any W2’s for a conventional loan. I’ve been wholesaling for over 3 1/2 years now and I want to build some long term wealth.
Does this deal suck? What would you do?