[Jackie Lange]

Jackie Lange

sometimes it is better NOT to buy the house… like this one..

The seller has had the house listed for 3 years. And has had it rented. Sellers are separated and heading to divorced. They live in Maryland.

The listing agent is also the property manager ( sounds like a conflict of interest to me). They were getting $1300 a month rent but now they only get $1000 and the property manager gets 10% of that. Their PITI payments are $1061 so they are bleeding over $150 a month.

It’s an older house 4/1.5 1736sf with dated country kitchen. Gas furnace 4 years old. Owned it since 2010,

Market is touch and go?military town with Obama threatening to close that base.

Balance $127,000
Payment $1061.
4.25%
Listed for $119,900 – yes they would pay someone to buy this house! They said agent will release from listing anytime

Zillow has it at $134,000 Value

It sounds like it is too risky to buy this house! If the base closes down, there will be no renters or buyers.

Since it has been listed for 3 years, either the listing agent does not have a clue what she is doing OR she wants the monthly cash flow to keep rolling in and has not put any effort in to actually selling this house. With the owners out of state, it’s not a good situation for them to know what’s really going on.

RENTOMETER SHOWS THAT THE AVERAGE RENT IN THIS NEIGHBORHOOD IS $1545!!!!!

The tenants are moving out at the end of October! It is the perfect time for you to do this deal NOW! The owners are worried that they will get stuck with the November payment and no rent coming in.

The seller would be glad to LOSE LESS!

You could master lease for the monthly mortgage payment of $1061, then sublease for $1545 – giving you about $500 a month cash flow .

You don’t really need the option but you could get one for the mortgage balance on the day of closing.

I’d wait and see what happens with the base situation and the economy in the area before agreeing to buy subject to the mortgage. Meanwhile getting some really good cash flow. Typically, you’d agree to pay the first $50 in repairs which you would pass on to the tenants. This would be another thing that the seller’s would love. Their real estate agent is probably jacking up the price of any repairs so she can make a profit on that too. No wonder she has not wanted this house to sell for 3 years.

Or, you could buy subject- to the mortgage with the seller giving you about $10,000 to take the house off their hands. Then you could resell with a Highest Bidder Sale for the highest down payment. You’ll get about $10,000 to $15,000 more down, then a month cash flow. But if the buyers default when the market is going down, you’d be stuck with a no equity house! Too risky!

$500 referral fee – only if you do this deal

Let me know if you want it. email [email protected]