I am relatively new to real-estate investing and have a question regarding a possible sub2 deal in Ann Arbor Michigan. I talked to the owner last night and he is offering the house for 149,000 which seems to be about the going rate in the neighborhood for that type of house. He has a great loan of about 5.125% making his payments a little bit over 1000 a month which includes the loan plus insurance and property tax. He owes 140,000 on the loan right now and alluded to the fact that he would be willing to part with the house for that amount. In this case, if I were to make an offer, would I take over payments of insurance of would he? What about property tax? Or are those items that need to be specified in the contract? Is there a high probability that the bank (which is Fifth Third) will call due the mortgage if the title changes hands?
I’ve been reading a bunch of the posts here and it seems like there’s a lot of folks here that know a ton about this stuff so thank you in advance for any advice that you might have.