3 Houses with Seller Financing and Private Money

[Ryan Hill]

Wanted to share a recent an investment I did in the SE with my partner. 

3 Single Family Properties - Seller Financing 2 years @ 6% amortized over 25 years

Purchase Price - $182,500

20% Down Payment covered by private money 5 years @ 10.5% and 2 points up front. No pre-payment penalty.

The only money we brought to the deal was for the 3 inspections and 2 points on the private money. We have plenty cash reserves in case the refinance doesn't get us to where we need to be but pretty confident it will and then some. This gives us an opportunity to pick up more properties at the rate we want. 

2 of the properties are already rented, the other property has been made rent ready per our request by the seller. Once they are all rented we should be getting around $2500/month. Not going to cash flow like crazy while we have both loans paid off but once we refinance we should net a little shy of $200/month/property. 

We like the BRRRR strategy but seller financing is a great option for when the houses are already rent ready and you can either come up with the down payment or use private money to help lesson the blow on your bank account up front.

There is a ton of competition in a lot of different markets across the US so the number one thing I'm focusing on is my deal flow and making offers on good deals. We found these off-market properties from a local property manager, I utilize craigslist, FB Marketplace and wholesalers. 

Considering direct mail, letters, calling on FSBO's and expired for finding rentals because I'm not local to the market I invest in.

Anyone have other creative strategies you are using to find off-market properties in virtual markets?

Cheers