Q: This is a follow up to the "Big Equity, owner willing to take payments" questions that have been posted previously.
Market Value - $280k
Loan Balance - $129k
P&I - $650
Home is in perfect condition - spotless. Just lacks the pizazz of fancy faucets, hardware, and other fancy stuff
Has an 18k projection TV system, though.
The seller is paranoid about selling subject-to this guy has thought up of more scenario's on what could go wrong than I ever have... so before I pack my bags and leave him haning I figure I'd give a lease option a last ditch effort.
Seller needs 20k to put down on a new condo. I could easily rent this house for 1300-1600 per month, depending on how fast I wanted to fill it. I was thinking of making the seller pull a HELOC for the 20k he needs to put down. I would then rent the home from him on the lease option for about $1150 to cover his HELOC payment, mortgage payment, and Taxes & Insurance. In exchange for that, I would take a $300 credit per month toward the purchase of the home.
One obstacle I see is that his next mortgage lender may not credit him the full 100% of the incoming rent payment, and he may never qualify for his new condo.
Any advice? Should I take the "Get the deed, or get the door" attitude with this one?
I don't like that he is getting jumpy. I have found if they are jumpy now, they may never slow down.
Have you tried to do an agreement for the deed? This may very well calm his nerves, because he is still in control.
I do like the HELOC idea and it should not inhibit him from getting a loan on the new property, because we can show where the property is under contract and work with the mortgage broker to get his deal done.
He doesn't have too many options. Stay with it a bit longer. Don't let the home entertainment center be the catalyst behind the deal!!