I don’t want to put any money down, but I’m not sure how to structure it. Here are the underlying facts:
- It is a blanket loan, which means that all three properties have one single closing cost.
- They owe 110,000 and their asking price is 117,000. However, they are in the final stages of foreclosure, are divorcing, and need a quick sale.
- Their current payments are 1,223.77 PITI.
- One is rented for $575. The tenant has been there for years. The other two have market rents of $525 and $550.
- The comp value (based on nearby sales) is $160-$170 for all three.
- No major repairs are needed.
My goal is to assume their loan, or offer them seller financing, and then re-fi immediately after closing. Because it is november, it would be hard to sell so I plan on holding them as rentals/lease option. They have found a tenant for 1 property at $525 and I plan to lease option the second.
Can someone help me structure this deal? It will be my first. I’m a newbie.