Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
Just closed today! Another juicy off market deal, this time I couldn't wholesale it. My day job allows me that financing that makes this deal too good to be true.
Property info.
834 A. St. Ramona, CA 92065 3600 sqft four (2/1) units. Rents are currently anywhere from $795 each to $900 one unit is vacant.
Paid $322,300 for it and I'm being loaned $33,000 to rehab it. The two lower units are pretty trashed. One is vacant the other is occupied but I'm getting the tenants out fast in a creative and friendly way so we can rehab both quickly. The top top units are beautiful.
Since it was a FHA loan I will live in one unit. I put $15,000 down I will collect $2500 Monday in rents. If I were not living there it would cash flow around $1300 per month once dialed in so after one year we are looking good. That extra $300 a month in FHA mortgage insurance is hurting me but we will see what we can do about that in a year.
I'm sure this isn't nearly as juicy as those deals in other states but when I look at how little I put down and how quickly I can get my money back out of it after I relocate in a year I'm happy.
Real Estate Agent · Madison Heights, MI · Member since 2012 · 58 posts · 3 votes
13y
Congrats on that my friend! You are living my dream! lol! I'll get there soon though. You definitely look like you have your hands full with this little 'gem'.
Investor · Los Angeles, CA · Member since 2009 · 39 posts · 8 votes
13y
Congrats. What a coincidence. Me too. Same loan, same property type. Let me know how it goes. 2 of mine are rented. I'm still trying to rent the last one before I move in. So far, so good.
Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
13y
They are not easy offers to get accepted, they are renowned for falling out. We damn near set a record with it taking 42 days to close. It was a streamlined 203K though. I was lucky the realtor knew I wholesaled real deals so he had faith in me and wants some of my deals.
Yes there is a one year occupancy requirement. This is how you can get away with the super low down payment.
I have not sealed the deal with the tenant yet so this is all talk. Had a quick convo her place is a mess, any guess if it was bad before she got it but it has rodents, roaches and is filthy. She asked when I planned to work on her unit and expressed concern about its condition. So I asked why haven't you moved out if its so bad she said she wouldn't get her deposit back and couldn't afford a to put money down for a new place. Well I got her deposit from the seller and I'm happy to let her have it. So after I collect April rent I will offer her this.
I'll give the $1000 deposit straight to the new property manager at her new place I've already found that's comparable. I will also pro rate rent and give it back to her from the day she leaves the unit. So she gets out of a dump, into a new place and doesn't lose her deposit. Costs me $1000 someone else gave me to start rehabbing fast and get rid of a dirty tenant who is bringing a bad element to the building. I have a good feeling about it.
Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
13y
I should add this was a pocket listing it was never on MLS. I don't buy deals off there ever. The property manager was a piece of work and had a shifty contract that stated should the property be listed on MLS he would be paid a percentage of all rent collected and he had managed it forever. It was his way of trying to stop them from selling it. So they had to find a buyer without listing it, a bird dog brought it to me for me to help wholesale.