Hi REIN Members,
I have a potential motivated vendor but I need advice on the exit strategy. Or if I should just walk away.
The seller has agreed to an AFS for 390,000 with a 5 year term (appraised value 420,000 - need to confirm). He wants 15k down (which I would make with investor money with accrued int+pmt). He purchased the home with a LOC and his payments are only $550/month. Verbally, he agreed to me making just his payments.
The home is a 3+2 bed and 3 bath, 1500+ sq.ft. Currently it`s a rental house with a separate entrance to the basement suite. I can purchase the property vacant. This property is attractive because of this reason...cashflow.
I would like to lease-option but that would require more cash to make it a single family home from its current rental state, but then it would offer great cash flow and I would recoup a portion of the DP.
If I rented the property `as is` the cashflow is still good and then I could get mortgaged towards the end of the term and re-evaluate.
Any input is greatly appreciated. This would be my first property - I`m new to this game and my plan has been to implement QTRE as well as buy and holds, separately of course.
Thanks,
Travis
I have a potential motivated vendor but I need advice on the exit strategy. Or if I should just walk away.
The seller has agreed to an AFS for 390,000 with a 5 year term (appraised value 420,000 - need to confirm). He wants 15k down (which I would make with investor money with accrued int+pmt). He purchased the home with a LOC and his payments are only $550/month. Verbally, he agreed to me making just his payments.
The home is a 3+2 bed and 3 bath, 1500+ sq.ft. Currently it`s a rental house with a separate entrance to the basement suite. I can purchase the property vacant. This property is attractive because of this reason...cashflow.
I would like to lease-option but that would require more cash to make it a single family home from its current rental state, but then it would offer great cash flow and I would recoup a portion of the DP.
If I rented the property `as is` the cashflow is still good and then I could get mortgaged towards the end of the term and re-evaluate.
Any input is greatly appreciated. This would be my first property - I`m new to this game and my plan has been to implement QTRE as well as buy and holds, separately of course.
Thanks,
Travis