All Forum Posts by: Carlos Monroy

The post has an error that unfortunately cannot be adjusted..

Cash invested in repairs was $5,600. Closing costs and agent commissions included were an additional $13,400. At the end of the day we walked away with a $19,500 profit.

Investment Info:

Small multi-family (2-4 units) fix & flip investment in San Antonio.

Purchase price: $96,500
Cash invested: $135,000
Sale price: $135,000

Contributors:
JD Kumala

This property is a duplex with one side occupied at $800 a month in rent. The other side had light renovations by our team and could generate $900 a month in rent. We decided to sell the property to another California-based investor.

Just want to say thank you for everyone that has responded! We are taking all of your feedback into account! 

@Account Closed Yes, the seller is willing to walk away with no cash to himself. He is years behind on payments because according to him the VA has withheld his disability pay. At this point he is willing to walk away and free himself of the property. My partner and I both suggested that he list the property with an agent because he has enough equity to cover his debt, however, he claims that it would be too much work and would prefer to sell to an investor or let it go into foreclosure. Also, the mortgage payment including PITI with solar and AC was a typo it should have been $2,220. Thanks for the help!

@Brian Gibbons Thanks for sending that over! We are going to do everything we can with our attorney to further protect ourselves. 

@Collin Corrington Great tip on the refinance! I'm not following you when you say, "I feel like creative financing isn't how you get into a house. It's how you get out of a house, whole and then some.". Is there any way that you can explain? Thanks! 

@Joseph Cacciapaglia This is one of our main concerns. The mortgage is pretty high for the purchase plus. If we were to lease this property we would only be able to generate about $1400-1500 a month in rent. Not sure if there is a buyer at those terms when they can rent for less. Any thoughts?

Hey BP, hope everyone is staying safe during these unprecedented times! 

I wanted to reach out to the network to see if I can get some help and advice while analyzing a potential subject to deal that my business partner and I are considering in San Antonio, TX. This will be our first subject to deal with a wrap so we are looking to ensure that we have the numbers correct before we engage an attorney to draft up our documents. 

Acquisition: 

ARV: $210,000

Mortgage Payment (PITI, including solar, and AC): $1,600

Existing Mortgage: $144,000 

Arrears: $24,000

Mechanics Lien: 3,500

Solar Lien: $3,500

Closing Costs: $3,500

Repairs: $10,000

My partner and I would come out of pocket $34,500 to bring him current on his payments then invest another $10,000 into touch up repairs. The house is in good condition and will only be needing small patch work along with new carpet and paint. All in initial investment we be $44,500. 

Disposition (Owner Finance): 

Sale Price: $210,000 

Down Payment (10%): $21,000

Mortgage: 30 year fully amortizing 8% fixed

Mortgage Payment (PITI, including solar, and AC): $221

Now at the end of the day our investment in the deal would be $23,500 and we would cash flow about $615 a month. Does this make sense with this structure?  

Some additional questions: 

1. Are there additional costs that may be missing from our projections?  

2. On a seller finance deal in Texas is it best to have an agent represent you in the sale of the property? If so, any investment friendly agents that you would recommend in San Antonio? 

3. From my research I understand that we can owner finance up to 5 deals a year without our RMLO license, is this correct? 

4. We will be engaging an attorney to guaranteed that we are protected if we move forward. Are there any other suggested methods of protection? 

Thanks everyone for taking the time to read through this! Happy hunting!