Sub to deal SFH

[Dylan Webb]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $15,000
Cash invested: $25,000

Sub to deal - paid the seller and wholesaler $15,000 + $7500 closing costs to assume $84,000 mortgage with a monthly PITI of $575. Repairs were $25,000. ARV is $170,000. Currently rented for $1800/mo.

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

Low entry costs

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

A wholesaler brought it to my wife and I. We negotiated $10,000 off the finder's fee.

How did you finance this deal?

Cash

How did you add value to the deal?

All new flooring, bathroom remodel, paint and drywall in the bedrooms.

What was the outcome?

Currently cash flowing about $625/mo with $85,000 in equity

Lessons learned? Challenges?

I found out later that my contract could have been better.

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

My wife and I are agents that serve the Northeast, PA area! We specialize in investments but can certainly cover all things residential. Scranton, Poconos, Allentown, East Stroudsburg, etc.