I got a call today from a homeowner who is about to get behind on payments. They have an ARM that will adjust next Feb. They need out now, due to his getting cuts in hours at work. They’d like to get some $ out of the deal, but can get by without it.
ARV: 140k
Owed: 109k
P&I payment is $889, estimated PITI is $1090
Repairs: very little (8 year old house)
From knowing this market, I could probably rent this out for $1250 on a L/O and get several thousand up front.
Unsure of current interest rate. Bank is Chase.
Should I take this subject to,lease it out and find a strong L/O buyer that can buy before next Feb.? Or should I plan on refinancing it myself before that just in case…not sure how to approach this.
She really doesn’t want to list with a realtor. She wants OUT.
It depends on what youre exit stategy is going to be… Make sure that youre not above 10% interest or adjusting above that soon( within the hold period) … It is too close for me to flip unless realtors are not involved, and there are those that have made a fortune on selling CFD or Wrap even a lease Option…
The interest rate for the next 12 months is 9%. It will adjust up in Feb. of 09, not sure yet how much. I’ll find out Monday. Does anyone ever refi a subject 2?
Contract for Deed… In California we call them Land Contracts… I guess you could refi a sub2 but the whole idea of buying sub2 is not not use your cash or credit…
Because I am a Sub2 flipper all of my resells are buyer financed and pay off the sellers loan. With that said there are a lot of people who finance the sale for the buyer and leave the loan in play.