123 Sub2 Test St, Birmingham AL
Sub2 takeover
| Existing balance | $120,000 |
| Existing rate | 5.00% |
| Remaining amortization | 25 years |
| Monthly payment | $702 |
Carryback (Hybrid)
| Amount | $60,000 |
| Rate | 5.00% |
| Amortization | 30 years |
| Monthly payment | $322 |
Cash structure
| Seller equity | $80,000 |
| Down payment to seller | $20,000 |
| Your markup | $10,000 |
| Buyer cash invested | $30,000 |
| Total monthly debt service | $1,024 |
Buyer monthly cash flow
| Gross rent | $2,200 |
| Vacancy | ($110) |
| Effective rent | $2,090 |
| Property tax | ($250) |
| Insurance | ($120) |
| Management | ($167) |
| Maintenance | ($110) |
| Sub2 P&I | ($702) |
| Carryback P&I | ($322) |
| Monthly cash flow | $419 |
Buyer returns
Disclosures (operator reference)
Seller disclosure (subject-to): About your existing financing: Your current mortgage will remain in your name after closing, with the buyer making the payments. This is called a 'subject-to' purchase. While the buyer is contractually obligated to make these payments and most do so reliably, you should know that if they ever stopped paying, your credit would be affected. We can discuss strategies to protect you, including ways to confirm the buyer's payment performance over time.
Buyer disclosure (due-on-sale): Due-on-sale clause: The existing mortgage contains a standard due-on-sale provision. While banks rarely call performing loans, this is a known risk in subject-to acquisitions. Buyers should plan refinance contingencies accordingly.
Notes
- — Rate spread only 1.4% (existing rate ~equal to current market) — Sub2 advantage marginal
- — EMD at risk: $20,000 — confirm buyer pipeline before opening escrow
Contracts
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Owner & property context
Knowable facts about the current owner plus a clearly-hedged hypothesis about motivation. Feeds outreach drafting — every number comes from a data source, and the hypothesis is marked as a hypothesis.
Matching buyers
Cash buyers whose buy box plausibly fits this deal. Filter-based preview — weighted scoring + outreach actions land in Phase 13.