*We are looking to assign to a landlord or to someone that wants to be a landlord until they can sell this house at a later point.
Hello everyone, I was hoping we could get some opinions about this potential deal (if it even is one!) as we are very new to this.
A friend of a friend is moving out of state and needs to sell his home. His house is assessed at $184,000 and is a 3 bedroom 2 bath. Doing the comps, home is worth $191,275. There are no rehabs to be done and house is in a location that is mostly rentals and some single family homes. Rent comparable are around $1200-1400/month. The thing is, he still owes $140,000 to the bank. He can't sell for his listed price of $175,000 and has said he would take the $140,000 for the house at this point(what he still owes). Being that this house has positive cash flow and the comps put it at an equity of ~$51,000, should we even bother making an offer of what he owes back to the bank? This is the first time we are dealing with a potential rental,so we would love to get some opinions. Thanks everyone, in advance!