All Forum Posts by: Account Closed

Congrats, care to share more the deal and financing?

No idea, I would ask and see what the response is personally. 

I know NY is competitive but any chance you could do any creative financing options? FHA is pretty strict on the down payment beings yours when it comes to loans. Some one else can speak on if theirs alternatives or ways around it.

Investment Info:

Single-family residence buy & hold investment in Wilmington.

Purchase price: $76,000
Cash invested: $7,200

Purchased this property seller financed with $2,000 down. The remaining $5200 was closing costs. Terms for the deal are $74,000 mortgage at 6%, 30 year amortization with a 3 year balloon. Already has a tenant paying $1000 a month in rent. ARV is $120,000, plan is to wait until the tenant moves out and do a cash out refi to pay off the original loan as well as raise rents to ~$1300. Really excited about this deal and should be closing on a similar one soon.

What made you interested in investing in this type of deal?

Creative financing helps you leverage your money better.

How did you find this deal and how did you negotiate it?

Did a deal with this investor in the past. Just came from asking "Do you have anything else you're looking to sell".

How did you finance this deal?

Purchased this property seller financed with $2,000 down. The remaining $5200 was closing costs. Terms for the deal are $74,000 mortgage at 6%, 30 year amortization with a 3 year balloon.

How did you add value to the deal?

Plan is to do a cosmetic renovation and change from an oil furnace to an HVAC system. That should get me in the ballpark that I want the ARV at.

What was the outcome?

Great deal for all parties and we're still exploring more deals together.

Lessons learned? Challenges?

Don't be afraid to ask

@Shawn Kostoff congrats I just did a similar deal with my last purchase. Do you plan on doing a reno when you turn it over?

Funny enough I got my first rule of thumb on full gut rehabs from @Jimmy O'Connor. +/- 50K is a solid start to assume for the renovation you're proposing. I agree with @Kenneth Garrett, and that 10K is pretty much your buffer for when things get more expensive than you expect. 

Just read up on it. I’m not sure what “10% equity to tenants” means in this scenario but it’s interesting. A lot of moving parts with that proposal. It would make a lot more sense to extend and/or raise the stimulus checks than attempting that proposal.

Welcome @Kevin Chang. Like @Eric Armstrong said you'll find it challenging to locate a duplex and above anywhere outside of Wilmington. I know you didn't list it as a location but me along with a few others on here primalrilly invest in Wilmington and could give pointers. Just reach out with any questions. Good luck

@Drew Hittner same thing in my market Only invest for cashflow so I agree take the plunge. 

Looks like numbers in my market. I'd say go for it. What would the ARV be if you did any repairs?