Ontario quick turn deal

[flanabum]

I have a potential quick turn lead in Ontario and would like some input on my options.....


Asking price is $250,000


ARV is $275,000


Repairs needed..... 2 new windows in front of house and needs new paved driveway


Existing mortgage is $213,000 @ 4.95% with 1.5 years left on term


Biweekly payments of $562 ( = $1124/month)


Taxes $3600/year ( = $300/month)


Seller is purchasing a condo at $159,000 and needs enough for downpayment and is open to maybe taking the rest of his equity at a later date or on monthly instalments.


He says he has a HELOC, but I`m not sure how much he has available ( can`t be much with his present mortgage)


How would you structure this deal??

His payments seem pretty high, but with over $20,000 equity in the property , I am thinking there is still good opportunity with a rent to own scenario. Any ideas /input would be appreciated.



Thank you,

 

[WhisperGroup]

Hi Susan,



For me to give my opinion I would need to know -



How much does he need for the down payment on the condo?



How much is owed on the HELOC and at what monthly payments?



Stephen

 

[RussellWestcott]

Will this property still cash flow if you are unable to 'quick-turn' it? I always analyze the cash flow on my properties, just in case I can't move it.... many an investor has been caught not being able to sell a property for full market value. If you are flipping it (cashing out now) you typically have to sell the property below market value, making it worth the while of the buyer. Why would a buyer buy your house over the others on the market... do you have a WOW property?



For me, if and only if, this property would cash flow if I could not sell it would I consider an offer (because if you can get a good cash flow property for $20K under value-- great job). With only a $20,000 spread on the flip... this can be eaten up very quickly on a flip.



Hope this helps