I've been wholesaling for 3yrs now and I did my first flip last year. Now am considering buying first house in garland TX close to where I live. It is a short sale that I hv been working on for over a month now. I first drove by the house an noticed it was vacant with a bunch of mail pilled up and notices on the door. I skip traced and called the owner lady in oklahoma who has been back in oklahoma since 2015 when she left dallas because her husband who she lived in the house with died. The husband bought the house before they married in 96'. And she was gonna let it go to foreclosure cuz she couldn't afford the 900/mo payment by herself.
So I sent my real estate agent up to oklahoma and she gave him power of attorney to get this done. We spoke to the lender who has had the debt for 2yrs and has it in pre foreclosure status for a year but nothing has been filled yet with county. They said it was on hold and would be open to short sale and actually they would approve a settlement price if after running her credit she is under 550 which I'm sure she is.
So she owes 60k principal balance on the house but she hasn't made a mortgage payment in 3yrs so all the payments and fees and everything is like 35k so payoff today would be 95k. It's a 3/1 1000sqft 1950's home. Tax value of the house is 90k and ARV is 140k for 3/1's in the area. I see a couple comps that converted the laundry room into a second bath with stand up shower and sold for 180k. Rent is 1200-1300 in area for 3/1.
So I gave the bank 60k offer and they said to get title to send the pre luminary hud.(sounds like they will move on it?!). I have cash offer for 90k. So I could wholesale it and make 30k. But I'm thinking about buying it cuz it seems like a home run deal.
I can't go conventional with financing because I currently hv two car notes and one is a range rover(that I need to get out of an upside down 10kon) so I asked my landlord to be private lender (I pay him every month on the 1st at 9am for two yrs so I figured we've got great rapport) he met me at the house an said he would give me 70k at 8%. (60k to buy and 10k to fix). I'm thinking it's gonna take 15k to get rent ready so I'd hv to pay whatever over 10k.
Rent rehab list:
1. Pull up carpet and install Laminate wood flooring through living, hall and 3beds
2. 9 doors
3. 8 Windows
4. 1 Toilet seat
5. 1 Bath tub
6. Bathroom tiles
7. Kitchen tiles
8 Water Heater tank
9. HVAC system
10. Roof is 10yrs old has a leak in master room. Need to get it looked at. Prolly can just patch
11. Foundation got a bid for 3200 for 9pillars lifting backside of house which is 2" lower
12. New Kitchen counters
13. Kitchen range
14. Sheetrock for garage space
15. Lighting fixtures
16. Vent covers
17. Paint
Please any feedback appreciated. I love BP
