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Updated over 8 years ago,
First Timer Question
Hi all,
I'm looking for a little advice. I've been browsing for an investor deal for the past few days having read several success stories here on BP. I came across a wholesaler/rehabber in Texas who has made the following pitch;
Description: Under market value fixer upper 4 beds 2 bath, 1078 sqft, lot size: .13 acres, yearly taxes: $1,200.00, estimated insurance: $750.00, estimated repairs: 30K; central hvac, flooring, update kitchen/bath, roof, interior/exterior finish.
Price: $49,000 Cash
ARV: 109-115K
Exit Strategy:
- Owner Finance with 30K repairs: 5k down, $1,095.00 monthly P/I, 30 year amortization, 10% interest, Price: 109k
- Rent with 30K in repairs: $1,095.00 with section 8, no need to chase the monthly payment, Housing Authority pays direct deposit to your account.
He is recommending a cash purchase but also has a lender who does rehab loans. I have very good credit and have the cash but I don't want to sink it all in on one out-of-state deal. I'd apprecaite any insight from experienced BP members on this type of deal.
Many thanks,
Colin Mc.