DEAL DEEP DIVE: What would you do?
Was driving for dollars when I saw this double with a bunch of newspapers outside in a decent Buffalo NY neighborhood. Sent the owner a letter and a church reach back out to me and said they had three other occupIed unIts along wIth the vacang doubke I spotted for sale. They were tired of managing real estate and just wanted to be a church again. I made a deal for all four properties (3 singles occupied at $700/ month and one vacant double that needs $30k of repairs) for 100k. Financed one through credit union. 30 yr for 50K. The rest bought cash by bringing in partners who brought cash to the closing table. In the end, I’m left with the occupied single brIngIng in $700 per month and the vacant double that I got for “free”. Financing cash to fund the rehab of the vacant double ($30k). ARV = $94k. But I can also sell the double now as is for $40k-45k and come out wIth 35k cash or so after closIng costs. $15k less after than after refinance but the tIme value of money comes I to play because I want to move to the next deal now. The market In Buffalo is softening. At this poInt, I am tryIng to secure as much as possible before the bust.