Found this TH for $199K; made offer on it for 205K; needs about $4k rehab (paint/carpets). I did not do a cashflow on it for possible spread. DSo i just back out of the deal? I did not give earnest money deposit. What should I do? 3/1.5 bsmnt (deal was found in maryland; way under average TH prices.) ??? ???
Sounds to me like you already answered your own question.
If your intention was to make this a rental, it sounds to me like it wasnt a good move. Especially if you can only rent it out for 1000-1200 {your monthly debt is going to be higher than that}
BUT- you say it was way under the avg TH prices. What do you define as way under?
It should be at least 20-30% under market, and if thats the case you might want to start looking for either someone to assign the contract to, try to find an end buyer now, or step away from the deal.
Good luck to you.
If you are under contract, you will probably have to find a reason to back out such as the condition of the property or unable to obtain financing, otherwise, you could be taken to court, although I’m not an attorney, so I don’t know this for a fact. However, the seller may not go to that much trouble anyway, even if you blatantly back out of the deal.