Owner Financed Investment Purchase

[Account Closed]

Investment Info:

Single-family residence buy & hold investment in Wilmington.

Purchase price: $76,000
Cash invested: $7,200

Purchased this property seller financed with $2,000 down. The remaining $5200 was closing costs. Terms for the deal are $74,000 mortgage at 6%, 30 year amortization with a 3 year balloon. Already has a tenant paying $1000 a month in rent. ARV is $120,000, plan is to wait until the tenant moves out and do a cash out refi to pay off the original loan as well as raise rents to ~$1300. Really excited about this deal and should be closing on a similar one soon.

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

Creative financing helps you leverage your money better.

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

Did a deal with this investor in the past. Just came from asking "Do you have anything else you're looking to sell".

How did you finance this deal?

Purchased this property seller financed with $2,000 down. The remaining $5200 was closing costs. Terms for the deal are $74,000 mortgage at 6%, 30 year amortization with a 3 year balloon.

How did you add value to the deal?

Plan is to do a cosmetic renovation and change from an oil furnace to an HVAC system. That should get me in the ballpark that I want the ARV at.

What was the outcome?

Great deal for all parties and we're still exploring more deals together.

Lessons learned? Challenges?

Don't be afraid to ask