Seller financing deal buy & hold!

[Josue Molinari]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $165,000
Cash invested: $25,000

this is a seller Financing deal in which the seller didn't want to sell to avoid capital gains.

we worked out terms that make sense for me and the seller so its a win win situation!

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

Cash flow even at high rate

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

on market for 24 hours & called to see what terms she wanted

How did you finance this deal?

owner carried, sub to

How did you add value to the deal?

bought a good price in a great location with a value add component (its a 3/1 and can convert to a 3/2 and add 25k to equity)

What was the outcome?

165k PP
25k DP
financing 139k
7% rate with 4 year balloon.
PITI: $1232
rent: 1750
cash flow $400

this deals awesome because at the high rate (7%) it still cashflows as a long term. when rates drop I can refi and increase my cash flow.

Lessons learned? Challenges?

first time doing seller financing and learn a lot and how easy it was.

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

yes the seller is an agent