Purchase Date: 12/16/22
The Deal:
The property was purchased vacant, it needs some significant work to it to make it liveable again. The property is right next door to a property we currently own with a partner. This property is a 3 bedroom with full basement and oversized 2 car garage. The total price of the property is $42,000.00 and we hope to have it rehabbed for $23,000 (once the new roof is put on, and be all in for $65,000 and it should be worth $75,000+ when we are done. The best part is, we will only owe $33,000 when we are done, on a seller-financed house!
How Did We Find The Property?
We found this property through a local wholesaler with whom we have developed a relationship. This wholesaler reached out to me since he knew I was looking for seller financing deals.
How Did We Fund The Property?
This deal is a land contract deal with a seller. Since a wholesaler brought us the deal, they received an assignment fee of $9,000. The purchase price of the property was $33,000.00, amortized over ten years, but with a seven-year payoff. The seller asked for 6.5% on the $33,0000.00, which we agreed to. So the way this works is, in seven years when the contract is up we are going to owe the seller approximately $5,500.00 and we will receive the deed at this time. In the meantime, we do not have to put down any kind of downpayment outside of the assignment fee, and we have two months until our first payment is owed. This will give us time to get the property fixed up and find a tenant.
How Did We Fix The Property?
This property needed all new paint, some flooring in the living room kitchen, and hallway, and some subfloor repair in the kitchen. The property also needed all new drywall, insulation, and ceiling repair in the master bedroom due to a roof leak.
Before Video:
Update List:
- We replaced the roof on the back of the house on the addition, with a metal roof
- We patched several spots on the roof, we will probably replace the roof will be later this year
- We put in a brand new furnace
- We put in new windows in the addition
- We replaced all the drywall in the back addition of the room, including all the walls and ceiling
- We replaced the floor in the kitchen, bathroom, and back room with LVP flooring
- We refinished all of the hardwood floors
- We painted the entire house
- We painted the cabinets
- We upgraded the countertop
- We put in brand-new stainless steel appliances
- We put in a new shower surround
- We upgraded the bathroom vanity countertop
- We updated the front porch and added handrails
- And much, much, more