Updated over 5 years ago on . Most recent reply
Newbie, working my first deal...
Good evening BP, I'm working on scoring my first deal which I found on Zillow (FSBO). The seller owns the property outright and is asking $70K. Both units currently rented and allegedly both tenants want to stay. While talking to the owner he disclosed that he was currently liquidating all of his properties and also had 3 additional SF homes on one lot currently bringing in roughly $1600 total so, he just became a warm lead for me(hopefully).
With that in mind I was considering the option of a straight cash offer in hopes of getting first dibs on his other 3 properties when he is ready to sell those. Once we close and things settle out I'll take out a mortgage to get all my cash out (6 months or so).
According to the county records he purchased the property for $37,500 in 2013. I'm considering a cash offer of between $50K-$58K plus closing cost (no agent commissions involved) which is right in line with the tax assessment. BRRR calculation link below...
I can basically do a Buy, Rent, Refi vice Buy, Rehab, Rent, Refi. Any feedback on this would be greatly appreciated. thanks, tommy
Most Popular Reply
Numbers on the BRRRR looks good.
One thing that I would look into is the current tenants.
Are they month to month? Or how long is the lease and what does the lease entail.