Board Topic: what to do
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what to do

Posted by: msmomrules Dec 19 2004, 07:38 PM
I really could use some help with this and would appreciate any feedback.
I helped my soon to be ex husband reinstate a mortgage to avoid foreclosure. I got the money from an equity line on my home. there is a recent appraisal of 169,000.00 for this duplex in bradenton florida. Each side has 2bedrooms/1bath. He also signed the deed over to me and now it is in my name only.
He has a 100000 mortgage note to be paid. If I have this mortgage transferred in my name, will the lenders make me pay for a new application or will they call the whole loan?
My exhusband also owes 60000.00 to my dad that I want to get out of this house. Is this still a wise investment?
Each side can rent for $700.00. the place is in decent shape. I offered his sister to buy it but I told her I needed the 60000.00 upon purchase and then I would sign the deed. They are thinking about this. I have talked to a realtor who said she can list the place a 182,000.00. I felt the right thing to do was to offer this to the sister first b/c she lives there. If she doesn't go for this what are my options?

Posted by: loanuniverse Dec 20 2004, 09:08 AM
When family is involved, I think that the best approach would be to go ahead and sell the property. I would just go ahead and sell the property so that I could give my Dad his $60,000. Let it be his decision on how to invest it. The problem that I see is that there is still people that you know that live in the house, how are you going to feel collecting from her on a monthly basis. If the property gets listed, that listing contract with the realtor should allow for the sale of the property to the sister/tenant without paying a realtor commission.

If you still want to figure out whether or not the property is a good investment do the following:

$700 x 2 units X 12 months = $16,800 {annual gross rents at 100% occupancy} - $700 {assuming one unit is vacant one month per year} = $16,100 {adjusted gross rent}

Then deduct the following:

1- Mortgage payments
2- Taxes & Insurance {only if not included in mortgage}
3- About $1,000 worth of maintenance a year {even if it is not spent, you will eventually spend it in big ticket items like a new roof}
4- Any utilities not paid by tenants {i.e. garbage pickup}

The resulting number will be the return on your equity.

Good luck

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