Input appreciated on this deal

General Real Estate Investing
1

I found an ad for a condo about 2 weeks ago. The owner wanted $30,000 to take over the payments. I offered him $5,000. He didn’t take it.

Fast forward to today and he called me back. He dropped it to $15,000. Here are the stats:

Market value: $350K
Balanced owed: $289,000
Monthly costs: $2010
Income: $1500/mo from tenants on 1 year lease signed in March

There is a pre-payment penalty until August. I’m in So Cal. TIA!

2

It’s negative cash flow from day one. You can’t sell til August - which means a minimum of $510 cash out of your pocket each month (not counting other expenses). This is why the seller is getting rid of it, I bet.

3

He wants you to pay HIM to stop HIS pain? :biggrin

4

Yeah, I don’t know why he put himself in this position. He’s a REALTOR, no less.

One of those things I had to type out to see clearly…thanks!