The Deal Brandon is Always Talking About

[Nick Powell]

Hi guys, I am currently an assistant college basketball coach diving into real estate investing. I have been running deals over and over specific to my market. I have currently landed on a great deal. It is a single family property with 2 bedrooms & 1 bath. The seller is asking $32,000 as is and it is for sale by owner. The renovation estimate is $20,000. However, the gold is behind the house. There is another small 1 bedroom 1 bath on the same lot that comes with it. This smaller house has been completely remodeled and has a tenant already living in it for $395/month. I have ran numbers and my lowest ARV I could receive is $50,000. (that is low balling the numbers) Therefore, i would leave 2,000 in the deal. Now, cash flow on this property is beautiful. Rents are at $750 in this neighborhood (directly across from the city high school). So $395 + $750 = $1,145. But if we do it right we will subtract mortgage, tax, insurance, vacacny, and Cap Ex to get a difference of $425 which is $5,100 of annual Cash Flow. After a year i can cash-out-refi and pay of my lenders and the world will be a wonderful place for everyone. Now, the reason for my post is that my lenders fell through. They are scared of the rehab. I am not. Now, i have asked the sellers to owner finance for a year until i can use my cash-out-refi. I will update as soon as they get back to me.

Please let me know if you have any other ideas.

Thanks everyone, I love Bigger Pockets and everyone on here.

Stay safe.