First Hold! Four plex - FHA203K Rehab Loan Purchase

[Tim G.]

Just closed today! Another juicy off market deal, this time I couldn't wholesale it. My day job allows me that financing that makes this deal too good to be true.

Property info.

834 A. St. Ramona, CA 92065 3600 sqft four (2/1) units. Rents are currently anywhere from $795 each to $900 one unit is vacant.

Paid $322,300 for it and I'm being loaned $33,000 to rehab it. The two lower units are pretty trashed. One is vacant the other is occupied but I'm getting the tenants out fast in a creative and friendly way so we can rehab both quickly. The top top units are beautiful.

Since it was a FHA loan I will live in one unit. I put $15,000 down I will collect $2500 Monday in rents. If I were not living there it would cash flow around $1300 per month once dialed in so after one year we are looking good. That extra $300 a month in FHA mortgage insurance is hurting me but we will see what we can do about that in a year.

I'm sure this isn't nearly as juicy as those deals in other states but when I look at how little I put down and how quickly I can get my money back out of it after I relocate in a year I'm happy.

[Tim G.]

I should add this was a pocket listing it was never on MLS. I don't buy deals off there ever. The property manager was a piece of work and had a shifty contract that stated should the property be listed on MLS he would be paid a percentage of all rent collected and he had managed it forever. It was his way of trying to stop them from selling it. So they had to find a buyer without listing it, a bird dog brought it to me for me to help wholesale.