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Offer accepted - closing on door #8

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  • bjl584
    replied
    Originally posted by riverwed070707 View Post
    I know this isn't a big real estate group but since I've seen some new interest lately (and I'm excited and don't have anyone to share with!) I thought I'd share my latest rental purchase. It's a 2 bed, 1 bath 850 sq ft SFH. Walking distance from local university. Last rented for $700/mo. Came across it as a FSBO. Looked at it and while it needs some work, it has excellent potential, is priced WAY under market value and is in a great location. I offered him full price with 10% down on the contingency he was willing to owner finance for up to a year while I rehab, rent and eventually refinance to a traditional mortgage. Here's now the numbers break down.

    Purchase price: $74,000
    Down payment: $7,400
    Monthly payment: $443/mo ($66,600 @ 7% on a 30 year amoritization)
    Rehab cost: $25k (includes new roof, kitchen reno, moving a few walls including enlarging both bedrooms and creating better flow, deck repairs, tuckpointing and flooring)

    After renovation value: $130k
    After renovation market rent: $1,200/mo

    Benefits of the owner finance I structured are 1) lower down payment (my lender requires 25% for investment properties) which allows me to keep more cash on hand to complete renovations 2) Once rehab is done I will refi with my bank to recoup the cash I spent on renovations while maintaining 25% equity so I'll not have spent anything out of pocket and have a new mortgage just under $100k with a payment under $450/mo.

    Looking full picture at my real estate portfolio, this purchase should put me at a valuation juuuust over $1M which if I'm being candid never seemed like a possibility when I started on this real estate investing adventure in 2015.
    very nice. looks like a good find

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  • riverwed070707
    replied
    Originally posted by scfr View Post
    That's quite the score finding a house below market at this time. Clearly you keep a close eye on your market and know how to spot a good deal. Congratulations!
    Obsessively so even when I’m not looking to buy. Zillow and local real estate boards are part of my daily ritual.

    Leave a comment:


  • scfr
    replied
    That's quite the score finding a house below market at this time. Clearly you keep a close eye on your market and know how to spot a good deal. Congratulations!

    Leave a comment:


  • Fishindude77
    replied
    Hope you make a bunch of money !
    Glad to see more folks doing real estate and other things with their $$ rather than relying solely on the stock market.

    Leave a comment:


  • ua_guy
    replied
    Owner financing.... dang, you're doing this right. Wishing you an easy reno, and lots of success! Sounds like a great opportunity.

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  • LivingAlmostLarge
    replied
    Congrats! What an opportunity

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  • kork13
    replied
    That's fantastic! Congrats on the acquisition, and good luck with the reno. Sounds like a great opportunity.

    Leave a comment:


  • riverwed070707
    started a topic Offer accepted - closing on door #8

    Offer accepted - closing on door #8

    I know this isn't a big real estate group but since I've seen some new interest lately (and I'm excited and don't have anyone to share with!) I thought I'd share my latest rental purchase. It's a 2 bed, 1 bath 850 sq ft SFH. Walking distance from local university. Last rented for $700/mo. Came across it as a FSBO. Looked at it and while it needs some work, it has excellent potential, is priced WAY under market value and is in a great location. I offered him full price with 10% down on the contingency he was willing to owner finance for up to a year while I rehab, rent and eventually refinance to a traditional mortgage. Here's now the numbers break down.

    Purchase price: $74,000
    Down payment: $7,400
    Monthly payment: $443/mo ($66,600 @ 7% on a 30 year amoritization)
    Rehab cost: $25k (includes new roof, kitchen reno, moving a few walls including enlarging both bedrooms and creating better flow, deck repairs, tuckpointing and flooring)

    After renovation value: $130k
    After renovation market rent: $1,200/mo

    Benefits of the owner finance I structured are 1) lower down payment (my lender requires 25% for investment properties) which allows me to keep more cash on hand to complete renovations 2) Once rehab is done I will refi with my bank to recoup the cash I spent on renovations while maintaining 25% equity so I'll not have spent anything out of pocket and have a new mortgage just under $100k with a payment under $450/mo.

    Looking full picture at my real estate portfolio, this purchase should put me at a valuation juuuust over $1M which if I'm being candid never seemed like a possibility when I started on this real estate investing adventure in 2015.
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