Is there a deal to be found in here?

The owner is asking for $750,000, Can no longer afford the mortgage ( 9mth behind) 6 bed 3 bath, full finish basement, wants to sell asap. Only repairs that need to done is basic upkeep ( porch stair, etc.) I checked the online recorder and two liens are against the house ( 585,000, 39,000)/ both mortgages were recorded 5/21/2007 (how long owner had property). Owner wants to sell but rent property back. I think the owner is asking too much, but here is a quote from the owner as to why: “Only reason Im asking for that high price is so that i can pay the rpt and ny state tax and closing cost and i have to get the deed and mortgage recorded after closing. And like i said before we would like to stay in the house and pay you rent.” Deal or no deal?

Market Value (est): Tax Year

Market Value
2010/11 643,000(TENTATIVE)
2009/10 682,000
2008/09 716,000
2007/08 783,000
2006/07 634,400

Pleasant day,
Geovanni Castro

I think this is a recipe for disaster. Once you get into renting him his house back what makes you think he can afford to live there if he can’t live there now? What extra income is he making now that he didn’t make before? I say “NEXT”.

If the house is worth $643,000 why would you even consider $750,000?
Your kidding are’nt you?
I find it hard to believe they are nine months in the arears.
If you have that type of money to spend you need to talk to someone with
investment expierance to help you.
Unless you are the one who is trying to sell and rent back.

I agree.

Too many decent deals to play around with this one.

Be very careful!


Fact is, there isn’t enough information that has been provided for us to say one thing of the other. For example, what if the homeowner put down a huge downpayment when they bought, and only now owe 200k? Would the deal make sense then? Of course it would! So fact is we’d need more information before actually determining whether something can or can’t be done. What other info is needed? What is the monthly payment? What are the annual tax + insurance payments? What is the ACTUAL market value (not tax assessed value)? What are the market rents? etc etc. From this, we can properly work the numbers and only then can it be determined what will or won’t work. I don’t know however how the other guys could say for sure what would work if they don’t properly understand the full numbers. What I do agree with though is that you should never ever rent back a house to a seller who has shown a history already of not paying. But I gathered you already got that drift. So what are the numbers?