Need advice..Newbie doing sub 2 in TX

General Real Estate Investing
1

I need some advice on my potential first sub 2 deal (first real estate deal period). The owner is motivated, I have not verified his mortgage statement yet but says he is current, house is county appraised at 94k (owners purchased for 98k) mortgage balance is 92k. The house looks very nice from the outside, Ive asked to see it. I have a little bit of fear because this is my first deal, any thoughts? I think this would be a good opportunity to get my feet wet, what should I look for as to a potential deal breaker?

Thanks

2

Howdy Mvergara:

I personally would look for a better deal. Not much if any equity. I used to believe in buying with little down and hold for appreciation without cash flow. I lost 50 houses that way to BK. Look for more motivated sellers that do not owe what the house is worth. Do not become a motivated buyer and pay too much.

3

Thanks Ted…we still need to get togther for coffee sometime