Subject 2 Deal in Westford VT, 8k Cash offer accepted

[Ray A Delfi]

Hello all. I wanted to share a project that a fellow BP Member had brought to me and asked for some guidance. @Albertinny Colin asked for some advice for a lead he receive but I was able to tell this was probably his first. We dug into this property ran some numbers walked him through the analysis process and even exchanged some great brainstorming sessions over the phone. What we came up with is the following. I’m looking for a second set of eyes on this and appreciate everyone’s feedback in advance.

The seller has accepted $8K to walk away from this property subject to existing mortgage.

Location-Westford, VT

Current Mortgage $154k, mothly P&I $950 (holding cost approx $1,000 p/mo)

Structure: A-frame house/Cabin 711sqFt on 3acres, 1 Bed (could be two but it’s a shared loft) full unfinished basement with egress.

Pellet stove and propane.

Property is 45min outside of Burlington, VT, 20min outside the Major skii resorts and 1.5hrs from Montreal Canada.

The house is outdated but can be a cosmetic rehab for about $5-10k but a full renovation would be optimal by expanding the living space and adding windows/skylights to the Aframe walls/room.

He has about 2weeks of inspection and to close in 30. I have the cash for the payment and holding cost. Current spread if sold as is would be between $20-$30k after closing and holding cost.

Strategies we discussed:

-Wholesale for 20-30k to a Rehab/flipper

-Go all in get funding and rehab the property ourselves, but would need a ton of structural changes.

-Complete light cosmetic updates and sell for $185k-$199

Do outs:

Condition of mechanicals (heating and water)

Confirm septic or municipal

Interview realestate agents to confirm the market in the area and some comps and the ability to sell under what conditions. We would like the agent to provide us with the market in the area and the demographic of buyers in the area and who we would market to (I.e. commuters, families, single men/women, minimalist, etc)

Title Company/Realestate Attorney that will be able to review the contract, conduct a title search, and be able close a subject to deal and pay the holding cost(mortgage) through escrow.

In all, I was intrigued with this deal due to Albertinny’s determination, open minded and awesome personality but the ability to take control of a property for under $10k is what really sold me. Today is only Day 3 of this venture and wanted to get some feedback and suggestions if I missed anything. I’m really excited to work with Albertinny and he’s fully aware of my reservations, but this deal has so much potential.