Hello-
OK, here is the scenerio:
I found a lady that is ready to sell her second home. She has rented it to people that she knows and has had a terrible experience with it. She is VERY eager to sell and wants to sit down and talk about doing something soon. She said that the bank has been threatening to foreclose, but she always paid up what she owes before they go to the next stage. The house is in a nice area right off the freeway and I think that it would be VERY easy to rent.
Here are the numbers that I am working with:
Current Rent = $850
Her Current Mortgage = 600 (not including an escrow?!?!?!?!)
Her Taxes/Insurance = approx 2000 year / 170 month (seems high?!?!)
Amount Owed = 69,000
County Value = 81,000 (questionable)
Comps from realitor (2005) = sold 75,000 - 81,000
Here are my questions:
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Would you just buy it or do a sub2 and take over her note?? I think that if I took over her note and added an escrow account I would be losing money each month.
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If you bought this property straight out, how much would you offer? I was thinking of offering about 60,000…leaving her with 9000 to pay off. Do you think that would offend her?
3 If I do take out a loan as an investor, would my rate be atleast 10% or could it possibly be lower??
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Can you tell me what all is included in the ESCROW? I don’t know if I calculated that right??
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Should I just walk away and keep looking??
Thanks in advance to answering ANY of these questions!! This site it the best!!
Thanks
New Invester Trying To Learn :