I have a seller that is relocating and wants to get rid of her house. The house is a 2/1 but has storage space that can be made into a third bedroom. I thought about purchasing the house subject to and renting it out on section 8. Market rents in this area is around $ 600 -650 for a 2/1 and $750-800 for a 3/1. Would this work as a S2? Should you rent a house out when purchasing subject to or only do a lease option?
Lastly, the seller is willing to walk away with no money paid to her. Should you use the 50% rule of thumb when doing a S2?
Go after the the home but make is subject to a loan modification. See if you can get this rate knocked down to the mid 5 or 6% range for a few years or even for the life of the loan.
If you can get that then go for it. You don’t state what the value of home is. So I am under the assumption that it has a TON of equity. If not then move on unless you can get the rate down and get a decent profit margin.
i agree take over sub2 a successful loan modification to get the rate fixed. im making my full price offers subject to a loan modification. let me know if you need help on that.
In my experience, renting is cool IF you find the perfect renter. However, most of the time you won’t. It is better to L2P because since they will invest more than a renter, they willl take much better care of the house than a renter. Also, 39K is an awsome balance but see if you can do a short sale and get it down further than that. If not, if her monthly payments are decent, just take over the payments