Low entry cost subject-to deal

[Wyatt Postal]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $285,000
Cash invested: $26,000

Bought this property subject to with an existing loan of 265,000 at 3.75%
Purchase price was 285k, I waived my buyer agent commission so the listing agent got her commission and the sellers walked away with about $12k

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

Low interest rate and low cost of entry

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

It was listed on the MLS for about 90 days when I first reached out to the listing agent and pitched the idea. They accepted another offer right after that, but it fell through and they called me back a few weeks later saying they'd do it.

How did you finance this deal?

Took over the existing loan of 265k subject-to and gave 20k cash to the seller and listing agent. Closing costs were an additional 6k

How did you add value to the deal?

Did new LVP flooring throughout the house, new paint, and refinished the cabinets.

What was the outcome?

ongoing... the plan is to sell it on a wrap and cashflow $600/month

Lessons learned? Challenges?

It was very hard to find a title company that would handle a subject to on an FHA loan, but luckily my favorite title company that I use in Sonoma County helped me out because they've worked with me a lot in the past. Every title company local to the property outright refused to handle my escrow.

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

Just me