24.45% cash on cash return deal in Fayetteville, NC in 2023

[Ion M. Cerga]

Investment Info:

Single-family residence other investment.

Purchase price: $140,000
Cash invested: $15,000

This is a seller financind deal. We got a loan for 140,000.00 from with 15,000 was down payment and 125000 financed for 5 years with a baloon payment of around 115000 after 60 payments. The PI is around 630 a month and let's say 200 insurance and taxes, 145.0 property management fee and a monthly cashflow of routhly 474.8. To make this happen we got an extra cost of 75000$ for painting, granite countertops and back splash(474.8*12=5697.6. 5697.6/23300=0.2445*100%= 24.45% cash on cash).

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

Knowing personal the owner it made an easy decision to move on and find out the terms and numbers that will make sense for the owner as for us the long therm investors.

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

We know each other from church and the owners are the God parents for one of our kids.

How did you finance this deal?

We used $15000 from saving and the rest from the credit cards.

How did you add value to the deal?

We cleaned the property, re-did the floor, painting, counter top, backsplash.

What was the outcome?

Cashflow property in a great area. Mailbox money.

Lessons learned? Challenges?

Looking to find more deal with low or no money down and do more seller financing deals for real estate and chesk the possibility in other fields.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a local real estate agent and investor, so I'm looking always to connect with more investor to help them build their portofolia in current market and provide my help and expertise as one of the core 4 profesionals every long distance real estate investor operates with.