Purchase Date: 12/29/22
The Deal:
This property we were able to buy Subject to the existing mortgage. What this means is, that the seller had a loan on the property that had roughly 14 years left until the property would be completely paid off. The interest on this loan was 4.99% and the remaining balance was a little over $45,000. We agreed to take over the payments of the loan, and pay a $15,000 dollar assignment/downpayment/catch up the seller fee, in order to get into this property. That puts us at $60,000 plus the rehab, which we figured would be around $25,000. We estimate the house to be worth $135,000 when completed.
How Did We Find The Property?
We found this property through a relationship we have with a wholesaler. We like to have relationships with many different wholesalers in town so that when they need something we can help them out, and when they have a property we are interested in, they think of us! Since this particular wholesaler knew we were looking for seller financing deals, they called us before ever even testing the waters with other buyers.
How Did We Fund The Property?
This deal needed a $15,000.00 payment to pay the wholesaler and buyer what they needed to let go of the property, then we just started making their payments. This property did need some rehab, but we were able to take care of that through the cash flow of our business. We may have also paid for some of the materials in 90 days same as cash options with our vendors.
How Did We Fix The Property?
We did our standard transformation, new floors, new paint, new cabinets, counters, stainless steel appliances, new bathroom, light fixtures, outlets, switches, and covers, and then we did more. In this particular rehab, we vaulted the ceiling, removed two walls that created a dining room, and framed a closet for the water heater, water softener, and breaker box. We also re-arranged the bathroom, creating a better flow, and laundry area.
Before Video – Inside
Update List:
- New Paint Throughout
- New Luxury Vinyl Plank Just About Everywhere
- New Tile Floors in the Kitchen and Bathroom
- New Kitchen Cabinets
- New Kitchen Counters
- New Stainless Steel Fridge
- New Stainless Steel Gas Range
- New Blinds Throughout
- Vaulted Ceiling
- Removed the Dining Room
- Created a Utility Closet for the Water Heater & Water Softener
- New Tile Shower
- New Sink, Vanity, Toilet, and Mirror in the Bathroom