NY deal... $16,000 cash back at closing?

I have a deal where I can get the property for $60K. They owe $57K, and just want to get out of it, and said $60K would cover their expenses or whatever they need the $3K for. Anyways, the property was appraised for $76K. It has renters in the upstairs and downstairs, and they have been there for 7 and 10 years. One pays $460, the other pays $480. So there is $940 in rent coming in on this property each month. Originally I was thinking of wholesaling it until I found out that it had this much rental income. If I wholesale it, I’m not sure how much I could get, but probably under $10K profit. I’m thinking of purchasing and holding and getting $16K back at closing. I would have some closing costs as well if I’m going to hold it though. There will probably be repairs needed in the future. Again, I’m trying to build capital, but this would allow me to walk away from closing with cash because of the equity, but I’d own the property as well. Does anyone like this plan? Any other suggestions?


I should be able to get 100% financing at 7.5% for the first, and 12.5% for the second. Worse case scenario, I’ll get 95%.

What’s the best move for this deal? Have them quit claim the property to me and refi? Purchase the property for $76K and have them cut me a check for $16K at the closing? What’s the best approach? Anyone with experience in deals doing this?

I have had a couple experienced investors tell me I should just try and wholesale this. I can find cashflow deals like this all day, but I’m being advised to build capital first. Thoughts?