1st Post, Received off Market Deal
Hi. 1st post here. I've been lurking since October 21'. Currently an OOS investor living in beautiful SoCal. Investing down south. Wish I would have found this forum earlier to save me from a lot of trial and error.
Inherited my first two rentals in a C-/ D area. Area does not appreciate quickly and I'm primarily concerned with cashflow. I was familiar with the area from traveling there a lot with my parents.
The houses had lots of deferred maintenance. One is a 3/1 one is a 2/1. Spent 18k getting them rent ready and building a local team in the area. 3/1 rented for 850.00, 2/1 rented under market for 400.00. I still have a vehicle to dispose of here and other things to sell of before I raise it to market.
Since getting these 2 rented out I've had quite a few people approach me to buy their place since they are happy with what I have done with the worst two houses on the block.
A lot of junk, roofs caved in, walls missing, places trashed. I have passed everything.
This week I had a family of a man who passed away two years ago reach out to me looking to sell. It seems like a good offer.
They are asking 54900. Property built 1950 with a mix of brick and wood. House is larger than a lot of the properties in the area as it is a 3/2 about 1700 sq ft. The area is mostly 1200 2/1 or 3/1.
Deal includes 3 other parcels. One parcel directly behind the house which makes the lot almost 25000 sq ft. Also a 2nd parcel up the road in which the house that was on it was torn down in the last 3 years.
No one has paid the property taxes so 2340 is due across all 3 parcels.
House needs a roof and updating on the inside. Been quoted 7500-10500 to replace the roof. I figured about 8000 to update the interior.
Property can rent for 1000.00 due to the size once its all done
I want to see if they will be open to seller financing as the sellers live out of state. 10% down 400 a month with a balloon for the balance in 72 months. I would have to come out of pocket with the back taxes and the cost to close with a local attorney.
However I was wondering if I could find financing for that would finance the cost of the roof with 20% down.
Thanks!
@Logan F Blackmon since you own your current properties outright you might be able to set up a LOC on them if they are worth a bit. If you are below 100k a lot of banks won't want to deal with it. You could find some Hard money lenders that lend on rehab and either use the house bought w/ seller financing as collateral or the houses you currently own.
Keep up the good work sounds like you found a great spot!