Hello,
I am trying to figure out what would be the best way to buy this property,
Purchase price 260K?
Existing Financing on the property: 108K
Current monthly payments PITI 1365/mo
Current monthly lease could be 1850/mo
The owner wants to sell the house, it will sell on the market for about 272K, but it needs about 5K to make it nice and there is the 6% commission.
If i buy it she saves the commission and the 5K becuase I would lease the house out and for leasing it can be fixed from 1K wihch i will pay.
So the question I wrestle with is how to make this attractive to the seller but still have it make sense to me.
She is willing to sell subject to existing financing and I wonder what to do for her equity. Buy at at a price higher than 260 and do a wrap for 5 yrs where she would be paid when i refinance, or ask her to carry a second mortgage for 5 yrs with an interest only and baloon after 5 yrs.
I could put a down payment of up to 30K, the problem i have is that i am not able to obtain a mortgage due to stains on my credit that will fall off in 2015.
Homes in this area are appreciating very nicely. She can sell on the market in 2 days but would consider my offer and finance if it is attractive. The house is on the street where i live so renting and maintaining it would be a breeze. Yes, i know there is no cash flow, i am going more for the appreciation. Thanks very much for any input you may offer.