New-home sales hit a seasonally adjusted annual rate of 698,000.

Due to current interest rates, many CAP rates are much lower than they should be and usually there is only so much price discount a non-delinquent seller will be able or willing to offer.

We raised $4.5 million in equity and got $4.5 million in fixed rate debt from Freddie Mac at a 5.85% rate.

I have about $300k in equity (based on a BPO performed in July 2023) but no cash.

That 4% cap rate on in place financials is a lie.  

We have made money buying properety based on cash flow (lower priced) rented out for a period, then selling to an owner occupant. 

I do not have the capital for the property to pitch in, so I plan to use the investors money to secure the property.The interest rate that I will pay the investor is 5% for up to a duration of 20 years.

TERMS- Deal Type: Seller Finance- List Price: $580,000- Purchase Price: $780,000- Seller Carryback: $693,000- Total Entry: $100,000 Breakdown: Assignment: $13,000 Down: $87,000- PITI: $2,657 Breakdown: Principal & Interest:: $2,000 Taxes: $464Insurance: $193- Rent: $5,250 ($750-800 per unit)- Amortization Years: 28.88- Interest rate: 0%- HOA: NONE- Balloon: NONE- EMD: $5,500- COE: Feb 12, 2025- Occupancy: Occupied, Occupants staying post closing- Title company: PROPERTY DETAILS:MULIT-FAMILY7 Units - 2B/1B per unit- Living sqft: 5,200- Year Built: 1940- Age of Roof: 1- Age of HVAC: New- Age of Water heater: New- Condition of Electrical: Good working condition- Condition of Plumbing: Good working condition

If the landlord or their employee did the work themselves, they must include a description of the work, how long it took, and the hourly rate they charged.

Super low vacancy rates in SD, even STR's.