It’s a highly motivated seller. Bought house in 2002 as a single person and later married. Now its a rental and it’s not cash-flowing for her. She is 3 months in arrears. She wants it sold because her family wants to make an addition on their personal home and she needs to her fix credit.
$725 is what the current tenants pay per month. Her monthly payment is $625 including interest and tax. This is a loan refinanced in “2009 or 2010.” 2012 taxes are estimated at $760/yr. current mortgage is 100k 30year 4.25% annual fixed rate. I estimate that she might have $5000 in equity if she made 2 years payments. I’m not clear on how much equity is in it.
After $2k in repairs is worth 85-95k. Basically I need to get the curb appeal to 100% otherwise the house is acceptable.
After talking to her, I can sense she just wants it off her hands. She’s 3 months behind, she already got her cash out when she refinanced…
what do you think of this:
-purchase house subject to the current AHMSI owned loan
-purchase price is payments in arrears + her equity
-lease for 5 years at $775/mo
-option to purchase for $115,000
-non-refundable consideration for option of $4000 (covers $2k in cosmetic work and $2k for payments in arrears)
-leasee to pay for all repairs under [home own insurance’s deductible]
is $150/mo enough margin if the leasee is going to cover repairs? what else needs to be considered so I can work with such a small margin. Can this work?