- Joined
- Sep 25, 2007
- Messages
- 14
I have a motivated seller, we agreed on:
purchase price of $365,000,
deposit of $16,000 (upon finding a rent to own tenant). and me taking over his mortgage payments. The seller needs the money and was not willing to sell without some cash upfront.
Total balance on debt: $340,000
The balance is paid when the tenant buys the house.
The property value is about $385,000.
It looked good from the start, but then he has disclosed more details:
First mortgage:
$300,000 - mortgage at 5% interest and $1870 monthly payments, matures in April2012
Second mortgage:
$40,000 - private loan - second charge, interest only with $400/month payments maturing in January 2012, one month interest penalty to prepay. The seller agrees to make payments on this loan, but it has to paid off at maturity.
Property taxes: $300/month
The market rent in the area is around $2000/month
Could you please help: is there any way to structure this deal, or should l drop it?
Thanks a lot,
Ina
purchase price of $365,000,
deposit of $16,000 (upon finding a rent to own tenant). and me taking over his mortgage payments. The seller needs the money and was not willing to sell without some cash upfront.
Total balance on debt: $340,000
The balance is paid when the tenant buys the house.
The property value is about $385,000.
It looked good from the start, but then he has disclosed more details:
First mortgage:
$300,000 - mortgage at 5% interest and $1870 monthly payments, matures in April2012
Second mortgage:
$40,000 - private loan - second charge, interest only with $400/month payments maturing in January 2012, one month interest penalty to prepay. The seller agrees to make payments on this loan, but it has to paid off at maturity.
Property taxes: $300/month
The market rent in the area is around $2000/month
Could you please help: is there any way to structure this deal, or should l drop it?
Thanks a lot,
Ina