Purchase Date: 12/20/22
The Deal:
This property came upon us suddenly and we closed quickly. This property is a 3 bed, 1 bath house, that needed a ton of repair. While this property isn’t in the part of town we normally buy in, we don’t hate it either. This property has a total purchase price of $45,000.00, which is about $10,000.00 more than we would have liked to buy it for if we were a cash buyer. However, with this deal, we got such great terms that we were willing to pay more. Due to the amount of work needed, and the fact we were closing a lot of properties all at the same time, we were low on cash. So, the seller agreed to no downpayment, no payments for 6 months, and seller financing for 10 years! We estimate that we will be all in around $65,000 and it should be worth $85,000+.
How Did We Find The Property?
While at a holiday party for our local REIA, one of our friends whom we had purchased a house in the past, mentioned that she would like to sell another house. Without knowing anything about it except that the seller wanted $40,000.00, we told her we would be interested if it came will seller financing. We went and looked at it the next day and made the seller an offer.
How Did We Fund The Property?
With the way we were able to negotiate with this seller to finance the property, we paid no down payment with no payments for 6 months. The great part for the seller is that they didn’t have to do anything to the property, this property was wrecked and they didn’t want to have to do the cleanup or repairs. What we liked is the fact we could get into the property and do the repairs, but we didn’t want to be making payments on a property that needed a ton of work. So for this deal, we got into it for six months without payments, long enough to find a tenant and make a couple of months worth of payments without making a payment ourselves. The final deal looked like this, $45,000, 5% interest, and amortized over 10 years.
How Did We Fix The Property?
This house needed everything. We first had to haul the trash out of the house, and it was everywhere – including the attic!!! we filled multiple 40-yard dumpsters with trash from in and around the house. Then we went through and painted everything, we installed new LVP floors, new appliances, a new furnace, some windows, siding, blinds, etc!
Before Video – Outside:
Before Video – Inside:
Update List:
- Hauled multiple dumpsters worth of trash, including from the attic and outside
- Painted the entire house
- Replaced trim
- Installed several new windows
- Installed blinds throughout
- Install some ceiling fans and new lights
- All new light switches, outlets, covers, etc
- Removed the window framing from the front of the house
- Installed all new LVP throughout the house
- Installed a brand-new furnace
- Installed new siding on one side of the house
- Powerwashed the house and sidewalk
- Installed a new toilet (after the video)
- Installed a brand new stainless steal gas stove
- Installed a brand new stainless steel side-by-side refrigerator
- Trimmed some branches, and removed a huge pile of brush (after the video)
- And much, much more.