i have a homeowner that has made this months payment and just wants to walk away. the following are the property details. the rental dwelling policy is going to cost me $40 per month above the payment. your imput is appreciated if this is a doable deal or not.
3 bd/1.5 bth/1 car - the house is squeeky clean and needs nothing
mtg owed - $88,000.
piti pmt - $849
7% - 28 yrs remaining on a 30 yr fixed fha
the area houses that are close to this one:
mo. rent between $825 - $850
estimated price for such houses is $100,000
the price per square ft for this house is $88, other like houses in this area is $84
:help
Looks good to me. You can sell it on a contract for deed at 9-10% interest and collect somewhere around $5-$8k down. I’d sell it for $110-$120k depending on local market conditions and competition. Your buyer’s payments will be about $885/month plus taxes and insurance. You didn’t break down the P&I, taxes and insurance, but I’m guessing you’ll come in at around $200/month cash flow.
Every real estate deal is “doable”. Whether this one would be profitable is another question. If you are considering this for a rental holding, it is not a good deal. The negative cash flow will not go away for a long time.
If comparable properties are selling for less than this property, your opinion of its value may be too optimistic. If the owner couldn’t sell it for $100K and is ready to just walk away, the property is probably worth less than the mortgage balance.