Investment Info:
Single-family residence buy & hold investment.
Purchase price: $180,000
Cash invested: $29,600
Seller Financed deal!!!
180k Purchase price (worth 200k when purchased). Worth at least 220k more like 230k now.
0% down payment
3.98% interest
amortization 40 years
Seller had an ungrateful tenant living in this property for over 10 years at heavily reduced rent. 5 people OVER the age of 18 were living in this property rent free for years. Tenant was only paying 725/month in rent when market rent is 1200/month. I offered to pay seller 750/month P+I with ZERO headaches ; ) Love me some seller financing. Cost me 1400 dollars to close it total. Put 20k worth of rehab into it, added 8k or so in furniture and it's now operating as an airbnb. Cashflowing at least 800/month compared to maybe 100/month if it was a long term rental. Real estate is so much fun ; ) Embrace the chaos and you will go far in this business. Want to book a night when you're in town? Click the link.
https://www.airbnb.com/rooms/839099343659070376
What made you interested in investing in this type of deal?
We own a duplex next door and we wanted another rental in that area. Seller financed deals are the best!!!
How did you find this deal and how did you negotiate it?
Luckily we met the owner of this house a whole back and hit it off.
How did you finance this deal?
Seller financing 100% LTV. Woop woop!! Great deals are still out there
How did you add value to the deal?
Renovated the kitchen, painted interior, LVP flooring wall to wall, pressure washing, landscaping, new small deck out back.
What was the outcome?
We added 30k worth of value to this property easily. We built more of a relationship with an older seller who wants cashflow with no headaches...seller financing 101.
Lessons learned? Challenges?
Relationships Over Revenue. That is my motto. There are people in your phone right now that already trust you and want to see you succeed. Find those people, take them out to lunch/coffee regularly. BUILD your relationship until they can't resist the solutions you are providing. I have found true success getting to know 60,70,80 year old landlords who just want cashflow and not have to deal with the property anymore. Seller financing is a mutually beneficial arrangement if you do it correctly.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am an agent as well. This hybrid investor agent model is extremely valuable in my opinion. "I can pay 150k cash, list it for 200k, or pay you 180k seller financing..." Sometimes I'll "overpay" if it's seller financing with great terms. I would have paid 210-225k for this property with zero down @4% interest no problem.
