Advice on structuring a deal...
I have a potential deal I would like input on. I had noticed your discussion in another forum and thought I would invite you to share any and all insight you might have for me.
6 properties selling at around 25K a piece all with an 18%CAP. Homes were bought from the bank for around 18K- 20K a piece, and seller is looking to basically wholesale the houses for a quick profit.
The idea is to buy them with HML, do the minimal maintenance and repairs required to get them in shape, sell 4 of the 6 properties for around 1.5 times the purchase price, keep and rent the remaining 2.
If there is still money owed on the HML, then I will create a note on 1 of the remaining house and sell the note to pay the HML.
-@150 K (6 houses)
+@150 K (selling 4 of the 6 after repairs)
if a balance remains,
..@75K (value of remaining 2 house after repairs)
..@10K (a year in rental income including taxes, insurance, home warranty)
Create a note on one of the properties and sell it to cover the remaining balance of the HML
=Hopefully passive income and a good amount of equity.
@MarkSavalle