First one closed, $9k for her equity, payment $438 under market rent

Wrote this up because six months ago I couldn't have explained subject-to out loud.

What it means: the seller's mortgage stays in her name, the deed comes to me, and I make the payments from here on. I pay her something for the equity she has built. I don't apply for a loan and my credit isn't involved.

The deal. Three bedroom, one and a half bath, 1,180 square feet, in a neighborhood where similar houses rent for $1,850. Loan balance $198,400 at 3.375% with 26 years left. Full payment including taxes and insurance is $1,412. She had moved for work in the spring, was carrying rent in the new city plus this payment, and had a house worth maybe $232k with a fee-hungry listing agent quoting her closing costs she didn't want to pay. I paid $9,000 for her equity, $4,000 at closing and $5,000 over ten months.

The part that nearly killed it: her husband wasn't on the loan but he was on the title from the original purchase. Title caught it. He was two states away and mildly annoyed at being asked to sign anything. It took eleven days and two phone calls where I mostly listened.

I also sat with both of them and read the due-on-sale part out loud. The lender is allowed to demand the whole balance because the property changed hands. It usually doesn't happen while payments are current, and I told them my plan if it did, which is refinance or sell. If I couldn't have said that plainly I would not have deserved the deal.

What I'd keep: the reading-out-loud part, and paying part of the equity over time so I kept cash for the reserve.