Here’s the scenario I’m thinking of…I: Buy $55,000 property for $30,000 cashPut $5,000 into rehab and closing Qualify and place a tenant buyer, execute with the tenant buyer:1. lease agreement (2-year with an option to extend)2. option to purchase agreementCollect a non-refundable 3% - 5% option fee from the tenant buyerSell the “lease option package” to another investor for $45,000.

I wanted to know where all the real investor went so I could learn from successful people.I was gullible at one point and paid for a guru weekend which didn’t offer any actionable strategies only to find it was an extended pitch to spend more money with them.

The profile of the tenants that are interested in staying (minimum term = 2 months) during the weekdays and clearing out for the weekends include:Young professionals that work in the local town and then commute home during the weekend; Students that may be living at home and want some personal space during the week; Budget-conscious guests that have done the math and recognize that they can stay for a nightly rate during the week that crushes any kind rates and quality of extended stay hotels; Folks relocating into town and want to reconnoiter on the weekends for a home to buy; and also Well-traveled individuals that are basing in Athens Georgia as a gateway to the area going on weekend trysts anyway.Here is the language that we have in the "weekday" lease for each bedroom.

. $1200 remove 1st floor bathroom ceiling inspect for mold and water damage, install new sheetrock, finish, and paint $650 Additional cost based on extent of plumbing repairs needed. at labor rate of $35 per hour Install 2 glass shower doors 1st and 2nd floor bathroom showers, $140 plus cost ****$150-200 per shower door**** replace broken/missing glass in attic window $60 replace broken glass in basement window $40 Replace front porch ceiling $600 Install drain pan and waste line from 2nd floor hot water heater $160 extend sewer ventiliatin line thru roof. $300 correct 1st floor shower water lines by reversing the cold and hot water. $150 Run electric for condensation pipe in basement $120 Run drain line from condendation pump into waste water drain, $70 Replace all attic duct with flexible insulated duct. $6 per linear foot Mortar interior section of chimney inside of attic $400 Mortar exterior section of chimney $600 secure all loose electrical wiring in basement $85 Tearoff and replace south side of main roof, $4400 Additional cost may apply if board replacement is needed due to rotting or broken boards.No quote on the foundation yet.

School extends too late and starts too soon; the season is down to about 8 weeks.)Obviously $25k would never work as return on a million invested.  

With the federal tax credit of 30%, which has been extended through 2019, I estimate that my payback period will be 9 years.  

Is it unusual to get extended terms (20-30yr?).

I would refi and extend to 20 years to keep the same payment.

No, it was in extended period.

Coordinate all sales through Keith Bailey: [email protected] Review Bulk Buyer Guidelines: www.milwaukee.gov/BulkBuyers View Extended Listing: www.milwaukee.gov/ExtendedListing