Owner of a duplex in so. cali sounds he is about even on the property maybe a little over. He is 1 or 2 payments behind. Value is max 370k, he said he owes 380k. He has renters on each side that are paying $850/month. There’s obviously no equity but I was thinking maybe this might be a candidate for a short sale? He is open to “subject to” but if doing a short sale that’s not an option. He is in a neg am loan, min payments are 1700/month, fully indexed payment is 3000/month from what he tells me.
Whats your plan with this? There is no way this would cashflow… You would need to shortsale it down to around 100K before this would be worth that amount of money… Even If you short it down to around 250K, i dont think it would still be worth it… Or if you plan on feeding it cash every month you might find yourself right where this owner currently is… Just MHO
Ya that’s what I was thinking, he must be way undercharging for rent maybe. I don’t see how this could ever cashflow otherwise. But then again the rents don’t seem to be that low for the area.
Yeah, rental props price differently than SFR… SFR’s are bought on emotion, convenience, looks, etc… Rentals on cashflow/money making potential… Unless your planning on living there it just doesnt seem worth it, even in cali…