What a successful rental turned flip!
We purchased our flip almost 2 years ago. Did a complete remodel and held it for 1.5 years. Then rented it out and made good cash flow. We had less than 3k of our own cash in the deal. When the first renter moved out we took our opportunity in the market and decided to sell. At first we were going to sell it with a wrap and finance our selves. We posted on marketplace and had an overwhelming response to our post. We had around 7 or 8 people that were ready to throw the cash down payment at us to get the house. Then a young couple approached us that they had interest in buying but didn’t want to owner finance because they were preapproved through a mortgage company. At first my wife and I weren’t really interested in doing that. That is until we heard their story. The couple had been renting a small 2 bedroom place about 900 sq/ft. They had just began to to foster 2 brothers that were around 4 and 5 yo. They were contacted by cps that there were 2 sisters they they wanted to keep all together that were younger than the brothers. The only problem was the house that they were renting didn’t fit the criteria to keep more children with all of CPS’s rules. They only had so much time or cps was going to place them elsewhere. So they were frantically looking for a place big enough that was in there price range until they found ours. But only one thing was they needed it in a matter of days to get them. We worked out a deal because it was vacant that we signed a purchase contract of 126k and temporarily let them lease the property until we could close. They moved in January 1 and had to get all the inspections done within a couple of days. We had to do some touch ups to the property after it was leased for the last 1 1/2 years. So we get all of that done and they pass all of the inspections to get cleared by cps. Then due to the court systems they are still working on getting the girls. We had in our contract that they paid all closing costs which they were able to roll into the loan. So we are in late Jan and they had to get a new survey and a appraisal to make sure everything worked out with the loan and it appraised for what they needed it to. So yesterday we closed the deal. It was a win win for everyone. We walked away from the deal with a little over 50k profit in our pockets. Our buyers just purchase d there first ever home and will be fostering children for years to come. The profit is good and all but when you truly help someone that is the true profit!