Try to do Seller financing , because FHA loan won't be approved !

[Mei Leung]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $16,000
Cash invested: $76,000
Sale price: $184,000

This property purchased on 2010. Since we got insurance recovery money to add a new roof, new wood fence , borrowed money to replace all windows and doors, new cabinets , has 0.35 acre in the city , 2022 Heated sqft 4/2 . Got just got an VA offer , closing would be April 12 2019. Looking to do 1031 exchange .

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

Because it was so challenge, half of the roof was gone. rehab 70% of the house to make it livable .
Our rent was $900.00 at beginning 2010. Last rent on 2018 was $1350.00 , NO HOA .0.35 acre. It was not easy to find in the city,

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

I was the listing agent of the deal by that time , so I got it .

How did you finance this deal?

I paid cash,

How did you add value to the deal?

2010. We add half of the roof, new fence , new carpet , new paint in and out . start growing fruit trees, ( tenants usually didn't care about it , each time visiting them , I take care the trees ).
2017 after hurricane , we got $27 ,000 insurance claim recovery fund, the house got new (entire) roof , better fence, new ceiling (half of the house ) , also use home warranty service to keep the appliances alive. New bright color for the exterior . got new flooring.

What was the outcome?

We put on the market , got first offer on the first week ( windows could not pass FHA guideline ) Second offer afterward. buyer could not get the loan. we do seller financing , however buyer could' not come up enough down payment. the third offer just under pending on Sunday VA offer.

Lessons learned? Challenges?

This is a low income , high crime area. I was lucky had a good tenant family stayed 6 .5 years , After we decided to sell, It would be challenge to let the house vacant for long time. so I used neighborhood so called painter ... then those guys taken baby step to finish the job. I had to stay with them everyday to making sure they are working. ..
To use neighborhood vendor would be good to have a FREE security guard . Please make sure don't pay them until they finish the job.

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

Our title closer she is very knowledgeable to be my legal adviser.