4/2.5/2
SqFt 2380
owner moved out of state. House is vacant and owner looking to get what’s left on the note plus closing costs (Agent)
ARV: 165,992
Left on loan 140k
Pmts $1700 (20yr)
If doing a L/O, willing to refi to lower pymts putting them ~1300-1400.
No major repairs. touch up here and there.
I’m wondering if this would be considered a good prospect to L/O. I’m not ready to jump in yet as I am still learning, however, I can give you the details if this is something that you think would be a decent deal worth taking a look at.
Not sure how you refinance a house that you are l/o unless you are buying and l/o to third party. If you have that good of credit etc you could find a better deal with more equity. $25,000 sounds great but that would easily be off by $10000 or so quickly. If you get it with the current payments and very little down, the payments may eat you lunch. Sounds like a 10 % loan and today that is high. Check other houses in the area and if you can rent it at that price and for nothing down you may have an ok deal to try to hold onto with a l/o to a b/t.
Hope I am making sense to you
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
Actually the seller would be willing to refi the house if someone was to offer a L/O. I would then plan on doing a Sandwich L/O to a B/T.
Particularly if I can get in with nothing down. Do a sandwich l/o and charge $100-$200 more than the payment and try to get 5-10k down with some consideration for the buyer.
Travis,
If everything went perfect, which it won’t, then perhaps there would be something here.
Can you get $1,500 for a 2,400 sf house? Not likely. And if it you’re fortunate enough to get $1,400, you would gross approximately one month’s payment from an entire year’s worth of “cashflow”, after the refi. The refi will take 5k to 7k in costs, erasing some of the “equity”.
If you are not responsible for any payments until you find a TBer and you get at least a few thousand and you put that money in the bank and you spend the necessary time to find quality TBers that will actually cash you out within the next 18 months and they pay on time each month and…
Get the picture?
In my opinion no property is worth keeping (generally) unless the payment received is at least one-third higher than your monthly payment. There’s too many costs that come into play. There are plenty of investors who will disagree with me. That’s okay.
Could you sign the deal up and assign a TBer to the seller for some or all of the upfront funds? Possibly.
Is it something someone with little experience should tackle as a keeper? Not unless you have very decent income from other sources.