Apr 26

Sub To vs Buy & Hold

Here is a comparison of using Subject To vs Typical ways to Cash Flow a Property – With Subject To, I can Sell it to a Tenant Buyer and get a Large Down Payment ($10k to $25k), plus Cash Flow for a few hundred a month or I can Fix & Flip or I can turn it into a Rental

Transaction Type Subject To Other Buy & Hold Fix & Flip
ARV $225,000 $225,000 $225,000 $225,000
Purchase Price $186,000 $186,000 $186,000 $186,000
Mortgage Amount $186,000 $186,000 $186,000 $186,000
Closing $1,500 $1,500 $1,500 $1,500
Monthly Payment PITI $1,600 $1,600 $1,600 $1,600
P $7,000 $7,000 $7,000 $7,000
Rehab Costs Tenant Buyer

Does all Rhab

$7,000 $7,000 $7,000
Carrying Costs $7,000 $7,000 $7,000 $7,000
Months Until Sold/Rented Two Three Three Three
Closing Costs $1,500 $1,500 $1,500 $1,500
Cash to Sellers $1,500 $1,500 $1,500 $1,500
Sales Price $1,500 $1,500 $1,500 $1,500
Real Estate Agent Fees 6% $ 0 $1,500 $1,500 $1,500
Monthly Cash Flow $1,500 $1,500 $1,500 $1,500
Cash Out $25,000 $25,000 $25,000 $25,000