Second Project, Another Keeper. Beach House - Another Rehab Loan
Scooped up this deal direct from the seller at a very nice wholesale price.
1408 Minnesota Dr. Oceanside, CA 92054
3/2 1100sqft - 2 car garage - under a half mile to the beach (west of the 5!)
ARV - $400-$420k (hot neighborhood, its going to appreciate fast over the next year).
Repairs - $30k
Purchased for $307k with a conventional Rehab Loan (20% down) 4.35% 30 yr Fixed.
This one was found through driving for dollars, it took six months and two breakfasts with the sellers (Two elderly brothers who inherited it) to seal the deal.
Contracts signed March 13th, delayed closing due to the loan application on the fourplex and just closed it last week. They were super cool to let me extend closing a few times, saved me big time.
The loan is a Wells Fargo conventional Rehab loan. I had to put 20% down and I'm borrowing $30,000 to rehab the house. We are going pretty nice on this one but its small so it won't run too much.
If you have credit I would so HIGHLY recommend loans like these. All you need is for the property to appraise (based on repairs) higher than your purchase price and repair costs. The money borrowed is tied into the loan no separate payments.
Work began last week just with mild demo etc... Gotta do everything legit with permits due to the loan but my contractor is great and we are cranking out everything now.
I'm really stoked on this deal, the payment is less than my rent at a house down the street and its walking distance to the beach. This is a hard to find property in this area. Since a dumpster was placed outside three realtors have already shown up offering to help list it when its done. Sorry! Keeping this one!
I'll keep everyone updated, we are opening up the floor plan and adding a few other items. It's going to be a simple beach house to live in for two years, ride the wave up and dump it when the market is hot.
Here is a link to a photobucket album to view everything.
http://s1359.photobucket.com/user/AveWestREI/slideshow/1408%20Wisconsin%20Oceanside