Lead in hand. Subto or LO?

Hey guys.

Lady just called. Divorce. Selling for what is owed 90k. Appraised at 125k 3 years ago, appreciation is statewide average 3%. I’m thinking I can sell this on a rent to own for 140k.

She is very open and willing to rent. I’d rather make the slow dime than quick nickel.

She is not behind on payments, but she really can’t afford them any longer and live comfortably.

I can’t decide to take it on sub 2 or lease option. What do you guys think?

I’ve always thought of sub 2 as a foreclosure tactic. You get the deed for paying their back payments. I don’t know if getting the deed is nessecary here.

Let me know what you think.

Edit: Her monthly payment is 850 and its an ARM. Current interest she thinks 8.5

Edit2: (I get too excited) It needs paint and carpet cleaning and some installation of bathroom stuff. My stepdad will do that as he is a handyman. The stuff does not need to be bought it is in the bathroom on the floor.

Forget three year old appraisals and trying to use statewide appreciation. Get good comps from a realtor and have them tell you what it is worth now.

Good point…

do you have a preference when it coems to LO and Subto?

I bought the naked investor and it really helps. I know all about LO now, but I am wondering if I should get the deed or be safe and LO it, that way I have an out.

Good afternoon Enjoidc,
What is the proprty worth? Need more info to make decision. I would do lease op if there was no quick wholesale/retail money to be made. What is market rent for this house? what can you lease it for? what can you sell it for?

:help Here’s a thought and curious what someone has to say to this. Could you do a short sale on a preforeclosure deal by short saling the 2nd mortgage and pay the back payments on the 1st mortgage and take the 1st sub2 then payoff the 2nd whichever it’s negotiated to… after all said and done, create a new 2nd mortgage note tied to your T/B under L/O?

Let me know…