Jersey Condo..How to make it work???

[Busman95]

Appraisal:$250,000
Buyer Mortgage:$100,000
Taxes:3200yr

[Busman95]

Sorry accidentally hit the return button.

Maintenance:$145 month

The condo was being rented at $1450 a month.  She has no tenant at this time.

I'm not sure how to go about doing this if it's even worth doing.  I posted on the Newbie section.  Some people said Lease Option or Lease Purchase.  Just wanted a little more input from some more people.

[IWINUWIN]

What is the sellers motivation? How Much Cash does she want now? Why is it not rented now?

You did not provide enough info about the sellers situation in order to answer your question. In any event, theres enough equity in it that you can almost do anything, but so can the owner.

If you can buy the property significantly less than appraisal you can make money just by buying it and selling it (flip), or you could buy it and sell it on Lease/option or Lease/Purchase or Offer seller financing to your buyer who would not otherwise qualify the traditional way.

If you buy it right you most always can make money. I don't see this seller as offering a contract for Deed to you since she has plenty of equity in the condo. However, people with equity get in trouble also and they may have created a situation where they can't pull any cash out of the property thru traditional lenders. We really need more info other than an appraisal price, loan balance, and prior rental payment info in order to decide what solution to provide if any.

In any event the rent seems kinda low. I was getting 1200/month on a 2br/1bth garden apapartment condo in Long Branch NJ 2 years ago and sold that property at 130K. Of course the area the condo is in plays a part in the rental $'s.

Provide more info then we can help

KEC

[Busman95]

Basically she wants nothing to do with the condo.  She's been through a bad experience with it and she just wants out.  She wants to sell so she can buy a condo for her parents elsewhere.  I'm new at this so I'm really lost.  I tried talking her into maybe letting me rent it out for a couple of years but she just wants the place out of her name.  My credit is screwed up right now.  Her mortgage right now is about 100 grand.  She really doesnt want to deal with a real estate agent for the reason of the commission.  That's that.

[IWINUWIN]

How much will she sell it to you for? Is she looking for all of her cash out?

If she wants all her cash out now and wants full price for it I'd walk away. If she wants a good portion of her cash she could refinance and she could keep the loan in her name and you could take over the payments and owe her the rest with a promissory note and make payments on that. Then market it to a buyer for some cash down, monthly payments higher than you are paying, and some profit on the back end.

Good Luck

KEC

[Busman95]

She wants to cash out.  She doesnt even want it in her name.  Oh well.  Patience.

[IWINUWIN]

Guess she'll live with it a little longer then. If she not going to use a realtor, she'll probably have a good time waiting for buyers to show it who sometimes don't show up, not to mention the carrying costs until she gets rid of it, and so on.

If she doesn't want to give a little to make her happier then you probably can't help her.

KEC

[Busman95]

Yeah.  The appraisal was for 250.  She said she would go as low as maybe 230 or so.  I guess I have to wait my turn to close my first deal.