Hi: Jay. Can You Help:
I am brand new and just starting out. I am trying to figure out how to make my first deal work and really want to help out this couple. Due to medical reasons a couple came to me looking to sell their house at a discount. They need to walk away from the home. So before their house goes to foreclosure I have been trying to wholesale since Dec. 1. no luck. Info: They owe 101k on house.
Arv 162k
Renno 15k
Contract to me for 105k -Sell price: I started at 118K and moved to 110k. Still no buyers to assign.
With nothing coming from Craigslist, google and REIa: I am trying to be creative. I sampled the market for rentals and found two families in the area who want to rent the house for 1400.00 and entertained the option to buy. One family is on board. I checked rento meter and it came in at 1300 to 1400 so ok with numbers. Did bigger pockets calculater. Numbers are ok. Running on Brandons base line numbers from webinar: . cashflow is 230 pm and cash on cash ROI is 15 percent. My goal was to go back to a few buyers with a package deal haveing a house and it already rented I thought would be a good deal. I am 1.5 hours away so I do not know the area and buyers there at all. So most buyers are in my area adn dont want to manage that far out.
I am getting confused what to do: Ideas. Speak with owner to maybe: assume the loan. I got no cash. I also do not know if the house is sound enough for me to be a new rental owner, then fix it up myself adn get a hard money loan and roll that into the house with an assumed mortgage.
Can you help with some input and ideas? this is getting complicated....My plan was to start with wholesalilng to build some cash. do one or two flips to add more cash and buy one house a year for a rental. I am siked to begin with a rental but I do not have the reserves to pay for repairs and property costs for what ifs. And nervouse with all the other stuff I do not know
Maybe I do a hard money loan for 20k for the rehab and the 5k buffer to cover what ifs in the beginning. At this point a lot of moving parts and not sure. Can you help!
Drew Powers :
