Real Estate Investor · San Antonio, TX · Member since 2014 · 785 posts · 190 votes
I am closing on this house north of downtown San Antonio this week. Purchase price is $48,000 (got a 7k discount), will put $5000 into it for paint and minor repairs.
Planned exit strategy is to owner finance it to a blue collar family, $5000 down, $895 per month, $80,000~ final price.
16%~ cap rate when I locate the qualified buyer, and I am not a landlord.
Bedford, NH · Member since 2012 · 2k+ posts · 1k+ votes
11y
You know what will be awesome? When some clever housing assistance attorney informs your buyer that since all of the loan origination requirements were not followed to the letter, they can force you to refund every penny!
Life will be pretty grand for them, at that point. Several years of free rent.
Bedford, NH · Member since 2012 · 2k+ posts · 1k+ votes
11y
You know what will be awesome? When some clever housing assistance attorney informs your buyer that since all of the loan origination requirements were not followed to the letter, they can force you to refund every penny!
Life will be pretty grand for them, at that point. Several years of free rent.
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
11y
Originally posted by @Account Closed:
Planned exit strategy is to owner finance it to a blue collar family, $5000 down, $895 per month, $80,000~ final price.
....
16%~ cap rate when I locate the qualified buyer, and I am not a landlord.
Joe -
If you're selling the property, there's no cap rate associated with it. If the numbers here are similar to other deals you've posted, your yield is probably in the 8-9% range, with a large opportunity cost.
You'd be better off wholesaling the deal or keeping it as a rental.