Lease/option, pending loan mod

[John D.]

Investment Info:

Single-family residence fix & flip investment in Auburn.

Purchase price: $232,000
Cash invested: $272,000
Sale price: $430,000

Lease-option on a home in Auburn that was undergoing a loan mod on the principle balance. I leased the home with a significant option price, enabling the owner to keep the home until the loan modification went through. Sub-leased the property @ $2500 for a year until the loan mod went through, then sold, netting approx. $110k on the sale + $10k+ in net rents. This was a weird one, I took on significant risk in a few different ways.

Side-note, after I sold the property was sued by the buyer, the well failed and they did not have it inspected. Who buys a property with a well and doesn't have it inspected? Cut about $15k out of my profits. Buyers did a good job, he was military and showed up to the mediation in full uniform, claimed I intended to take advantage of them regarding the well.....thought at the end it made the most sense to just settle.

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

MLS listing with my primary realtor

How did you finance this deal?

cash, then hard money