Investment Info:
Single-family residence buy & hold investment in Mobile.
Purchase price: $19,000
Cash invested: $19,000
Acquired through a reverse mortgage. located near Mobile Infirmary Hospital and University of South Alabama Hospital. Near Down Town Mobile
What made you interested in investing in this type of deal?
area is near hospitals and great to possibly rent to traveling nurses and doctors during COVID. Potentially will Airbnb
How did you find this deal and how did you negotiate it?
Property family tapped into the home equity by applying for a reverse mortgage. The reverse mortgage didn't require repayment right away, until owner passed. Negotiated the deal with mortgage company based of home appraisal.
How did you finance this deal?
Self funded with Husband
How did you add value to the deal?
was able to negotiate a fairly good deal due to appraisal value and reduced interest.
Lessons learned? Challenges?
Don't let family get a reverse mortgage unless someone is saving in case the owner dies. Make sure you read the contract prior to signing to ensure when said payment in full is due upon. In our case the payment was due in full 1 year after death. Reading before signing is critical because the mortgage company initial payment due was 2 times what we paid, but by us reading the contract and asking for a home appraisal that help us a lot.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I was in Real Estate school during acquire
