Hey Guys and Gals :
I have a rather strange situation that I literally fell into about a year ago. I moved from Ca. To Georgia and was looking for property to purchase and rehab to start my investing career, well ended up renting a room in a 1920's bungalow and 3 days later the owner, who also resided there., disappeared and I didn't see him for about 30 days, so me in a house all by myself great. Owner returns and states he had gone to rehab and was confident he would make it. Well needless to say he didn't and I ended up with a lease option to purchase his house at the then fair market value of the home. Well My stipulations were I would pay the bank and keep the house up and for that receive a 6,000.00 and pay rent in the amount of 600.00 per month the then house payment. One year later, no owner that is sober and finding out house payment has been behind 2 months for a year so penalties and etc. House payment now 775.00 and owner wants money to come to him now.
House purchase price to me would be about 75,000
bank is owed approximately 71,000
House needs about 20,000 in rehab work
Housing comps in the 3 block area around are anywhere from a low of 110,000 to a high of 150,000
should I try and get a hard money loan to buy him out and then rehab and resell?
should I put a lien on it and move on ?
should I assign my lease option for what is owed to me? and can I ?
or ? anything to recoup the about 10,000 I have put into it for repairs and upkeep.