A Little Fun...Who is Most Creative?

[Account Closed]

Here is your opportunity to show your brains and creative business strategies.  Let's have some fun, and see who came come up with the best idea for financing this deal.  Dazzle me with your brilliance or baffle me with your nonsense, it's your choice.

Scenario: SFH in Canton, Ohio priced at $68,900 cash purchase only. Auditor site values at $112,000 in 2017. Tudor style home, 3 bedroom, 6 car attached garage. Large living room. Radiant heat, central air, beautiful woodwork throughout the home. Remodeled kitchen with custom cabinetry. Main floor and bedrooms only need new paint, all floors on main and 2nd floor are solid hard wood and in excellent condition. Exterior is brick. 1859 sq. Ft. All windows are in great condition, roof and mechanicals appear to be fairly new and in good condition. Lot size is 7,957 sq. feet - small with easy maintenance. Security system, paved driveway. Public water/sewer.

Main Floor and 2nd floor have no odor, no mold.  Basement has mold and STRONG mildew odor.  Used to be carpeted with bar in basement, carpet was removed.  Woodwork shows signs of water damage and green mold.  It appears a pipe on the ceiling for the heating system has frozen and broken.  Ohio winters can be brutal.

Projected Repair Cost - $10,000

Home is 5 minutes from a major private university, and 5 minutes from a major seasonal tourist attraction.  House sits right by express way which leads to the tourist attraction.  

Strategy:  $550 room rental for 3 students for 9 months. Fully furnished including appliances and utilities.  $85 per day Air BNB during summer tourist season.

Bank wants cash offers but you only have $5k due to another deal you have in progress.

RULES:  You have no family or friends to invest, you only have your brain and your creativity and $5k cash.  Hard money lenders want 20% down.  How do you buy this house cash before someone else sees the opportunity that you see?   What would you do??    Would you walk away, or do you want to play? 

READY...SET...GO!

[Benjamin Z. Pickens]

Use your money to fund the better of the 2 deals. Without knowing what the second deal is it sounds like the one you laid out is better. Cash buy means fast closing(I believe). Additionally, you are essentially walking in to 35K in equity with the gap between purchase price and ARV. Re-negotiate 2nd deal (you still wanna deal but only after the other one). Then cash out re-fi or HELOC to capture the second deal.