SFH in northwest Oklahoma City

[Ben Scott]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $98,000
Cash invested: $3,000

This was an Owner Finance purchase with less than ideal terms. But at the end of 12 months, per the agreement, I could find my owner financing. I paid 10% on a $95,000 loan for 18 months while I had a tenant paying $995/month. My cash flow was negative or even for that 18 month period. When I refinancing at 5.75 with a local bank, I started to cash flow. In January 2022, I moved in a great Section 8 tenant who is paying $1095/month

What made you interested in investing in this type of deal?

I liked the location and the purchase price. Close to several medical centers and a hospital and near Kilpatrick Turnpike

How did you find this deal and how did you negotiate it?

There was a FSBO sign in the yard. The owner was out of Tulsa and has been in the game for years, buying repos, fixing them up and selling them owner finance. The terms were fixed but I made sure I could refinance out of those terms within 12 months.

How did you finance this deal?

Seller financing initially. Then used the equity as my down payment with a local bank.

How did you add value to the deal?

We replaced all the windows in the home and did some deferred maintenance to make the home Section 8 compliant.

What was the outcome?

There's a section 8 tenant paying $1095. My mortgage is $610 and insurance and taxes around $200 monthly