No. of Recommendations: 2
Here's the idea. Offer to take over the sellers mortgage. Take it over "subject to" (whatever that is) with an agreement for first payment in 60 days. The seller deeds the property over to me. I rent out the property for the cost of the mortgage and 3-5000.00 down plus first month rent and with an option to buy the rent goes up another 2-300.00 per month

If I understand you correctly, this would be a fabulous deal. Too bad it'll never work.

First, "subject to" means subject to your ability to assume the current mortgage. Most banks won't permit this and a deed transfer would trigger the due on sale clause. However, you would be counting on the fact that banks, like people, often take the path of least resistance. So you would assume the mortgage by the simple expedient of contacting the bank and saying "send all future statements to this address". You then make the payments and hope that no one chooses to notice. In fact, this usually works although there are a few mortgage companies (and more seem to be climbing on board) who are getting pretty difficult to deal with when you do this.

Of course, when you do this, you won't get 60 days to make a payment. You have to make the mortgage pmt when due. And no seller will EVER do this with you, unless they are in severe financial distress.

Second, I didn't understand your next sentences, but I think you mean that you want to turn around and lease option the place at an above market rent, collecting a potful of money up front then raising the rent down the road. (or something like that; your wording is quite confused). This only works if the purchase price is right; it may or may not work for you. If you have to rent the place for the value of the mortgage, then it positively won't work for you.
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