to offer or not to offer?

Hey Every body. Im new to this site. I was a live in REO rehabber trying to turn sub 2er.I was wondering if any body could give some advice on an offer on a possible deal. She called me from an ad in the paper.
$ stuff
$ 270’000 current value
235’000 principle balance,no pre pay penalty
bought 2 months ago brand new, never
lived in, they say for a family member that
decided not to move, but I think it was for
an investment
$ 1700 a month payment including a $45 assoc. fee piti
$ 1400 is the top of what it might rent for

My question is what to offer: I actually met with them with the intention of offering $3k down and to take over payments, but when it came
time I told them that I had to think about if I wanted to make an offer or not because of the $high payment. But at the same
time I thought the offer might be to low( I chickened out). I may be able to get $1600 or more on a L/O, but I’m unsure about getting involved with
a negative cash flow? I thought about offering $0 down up front, take over payments & $10k at the back end. I ran this concept by them and they
did not seem to oppose to much. I just don’t like the idea of putting cash up front to take on negative cash flow. They do seem like they want out of the house
though. She has acouple rentals and she may be in over her head? its a brand new house in a great area. I told them I would call them tomorrow with an offer,
your opinion on this would be greatly appreciated. Thanks again



How about an option to take it subject to. If you don’t find sombody in a month or two then you don’t do it.

Your approach about giving them money at the end is on track. But why offer 10K?

The only way I would do this type of deal is with Gatten’s EHT. If the buyer crashes and all his money is used up I could give them the property back.

By giving the buyer the tax deduction, the equity buildup as the loan is paid down and part of any appreciation I think I could get a lot more than 1600/month.