These are two homes being offered, both with either a note or lease/option contract in place. Both are located in South Bend, IN close to the University of Notre Dame. They are in a neighborhood primarily consisting of owner occupant homes with retail sales ranging from $70,000 - $90,000. Both homes have been fully rehabbed and are turn key investments. Excellent long term cash flow investment with contracts in place, however if the worst case happened and both contracts defaulted the properties could be put on the market as is and your investment would be doubled.
Details of the contracts in place below. Please private message with further questions. Cash only and must be able to close quickly.
First House - 4 bed 1.5 bath fully rehabbed
Note in place with a current payoff of $55,000
Note amortized 20 years @ 9.99%, monthly payment $530.40 principal and interest
Total payout over 20 years $127,200 to you then property will be deeded to buyers
3rd party servicing in place
Second house - 4 bed 1.5 bath fully rehabbed
Tenant in place with a lease with an option to buy agreement
Monthly payment - $800/month rent with an additional $125/month paid towards option fee
Current option period ends 2/28/2016
Between now and option period ending a total of $16,000 in rent will be paid and $7675 in option fees will be paid
Rent and option fee total - $23,675 paid between now and 2/28/16
After option period ends then a note will be in place between you as lender and tenants as borrowers, that note will be broken down as follows
$47,300 purchase price, amortized 10 years @ 9.99% interest
Monthly payment of $625/month principal and interest, and buyer has agreed to pay an extra $175/month towards additional principal = $800/month
$800/month payment x 82 months = $65,600 paid total on note then lender (you) will deed property to buyer
Total payments on this deal - $23,675 in rent and option fees + $65,600 in note payments = $89,275
$127,200 + $89,275 = $216,475 total return on $75,000 investment
