Would you touch this?

Rehabbing, Fix and Flip, Rental Properties
1

I have a deal that I’m trying to see if there is a market to wholesale.

Property:
4/2 on 1/2 acre, nice area. ARV $205-215K
Needs ~10K in repairs (carpet/paint & touchups)

I am looking to pick this up around $140-145 (short sale). My first first exit strategy was to sell it to the renters (they said they wanted it, although they have not paid rent). They are having problems getting qualified.

So my question to you investors:

Would you buy this at $150, knowing that you may have to evict?

Other ideas:
Lease/option: Track record on paying rents scares me…but title seasoning wouldn’t be an issue if I can do a 6mo. lease.

CFD: Owner finaced: This may work, but again…risky because it would be a foreclosure process.

or…

Walk

2

It’s hard to say without knowing what your laws are. If you can quickly evict, then it might be worth it. No matter what you need to evict the current tenants to make the deal worth anything. Having a non-paying renter just doesn’t work. You could make the offer with the clause the current owner must evict the tenants before closing. That’ll give you some time to formalize an exit strategy.

3

Being this is a short sale getting the owner to evict isn’t going to happen, not enough time.

I’ve not evicted anyone yet, but from a few landlords I talked to say 2-6mo.'s.