1st deal L/O Help?

[HomeguyATL]

Hi all:

I am looking at my first deal and need some advice.  The couple owns a home and is heading toward bankruptcy.  They just need 2K to walk away from the home.  The current loan has a balance of 186K and the house comps for 205K.  The int. rate is at 9% with $1522 PI and 200 TI.  The house is in move-in condition.

I am thinking of a L/O for 36 months with 2K down and renting for $1722.  I will find a person to buy at $205K outright and collect $19K or wrap L/O with $20K down and sell for $210K in 12 months.

Does this math sound right and does the deal look good?

In addition, what happens when they file bankruptcy?

HomeguyATL

[DHBowie]

This sound like a question you should ask a real estate lawyer.  I wouldnt mess with a  house in which the people holding title are filing bancruptcy .  Thats just me.