Take over the seller's existing mortgage. Calculate cash flow, cash-on-cash return, instant equity, and rate advantage vs current market rates.
📍 Property Address (optional)
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InputsYour Numbers
Existing Loan (Taking Over)
Seller's Loan Balance?
$
Existing Monthly Payment?
$
Existing Interest Rate %?
%
Purchase Terms
Purchase Price / ARV?
$
Cash to Seller?
$
Closing Costs?
$
Arrears / Back Payments?
$
Rental Income
Current Monthly Rent?
$
Vacancy %?
%
Property Tax / mo?
$
Insurance / mo?
$
Maintenance %?
%
Management %?
%
Pro Forma (After Lease-Up)
Pro Forma Monthly Rent?
$
Pro Forma Vacancy %?
%
As-Is AnalysisCurrent
Enter values to see results
Monthly CF
--
after all costs
Cash-on-Cash
--
vs cash invested
Instant Equity
--
price - loan bal
Effective Rate
--
loan you took over
Cash Flow / mo
Gross Rent--
Vacancy Loss--
Eff. Gross Income--
Operating Expenses--
Existing Loan Payment--
Monthly Cash Flow--
Investment Summary
Cash to Seller--
Closing Costs--
Arrears--
Total Cash Invested--
Annual Cash Flow--
Cash-on-Cash Return--
Pro FormaAfter Plan
Enter pro forma values
Pro Forma CF
--
vs as-is
Pro Forma CoC
--
vs as-is
5-Year CF
--
cumulative
Rate Advantage
--
vs market 7.5%
Pro Forma Cash Flow
Pro Forma Rent--
Vacancy + Expenses--
Existing Loan Payment--
Pro Forma Cash Flow--
Rate Advantage vs Market
SubTo Rate--
Market Rate (7.5%)7.5%
Payment at Market Rate--
Monthly Savings vs Market--
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1
Get Seller's Loan Info
Ask seller for their mortgage statement. You need: current balance, monthly payment, interest rate. These are non-negotiable -- they're set by their existing loan.
2
Enter Purchase Terms
The purchase price and cash to seller determine instant equity. Low cash-in is the SubTo advantage -- you're acquiring equity for minimal upfront cost.
3
Add Rental Numbers
Enter rent, vacancy, and expenses. The loan payment is fixed at the seller's rate. If it's a 3-4% loan from 2021, your cash flow will be dramatically better than conventional.
4
Check Rate Advantage
The pro forma column shows exactly how much less you're paying vs taking out a new loan at 7.5%. This is the core value proposition of SubTo.
5
Review Cash Invested
Total cash in = cash to seller + closing + any arrears. CoC return on this is often very high because SubTo deals require little cash.
6
Understand the Risk
SubTo has risks: due-on-sale clause, seller credit risk, insurance complications. Always work with a SubTo-experienced attorney before closing.
Subject-To means you purchase the property subject to the existing mortgage -- the loan stays in the seller's name, but you take the deed and make the payments. The seller's mortgage doesn't go away; you're just agreeing to pay it.
The power of SubTo is locking in the seller's interest rate. A seller with a 3.5% loan from 2021 and a $1,200/month payment on a $200K balance -- if you took out a new loan today at 7.5%, that same balance would cost $1,398/month. You save $198/month just by keeping the existing loan.
Legal warning: Most mortgages contain a due-on-sale clause allowing the lender to call the loan due when ownership transfers. In practice lenders rarely enforce this while payments are being made -- but work with a SubTo attorney to structure the deal properly.