Buy And Hold With Great Owner Financing

9 Replies

Investment Info:

Single-family residence buy & hold investment in Cape Coral.

Purchase price: $210,000
Cash invested: $50,000

Single family 3/2/2 pool home in SW Cape Coral.

What made you interested in investing in this type of deal?

I was on the fence until I asked the owner if he would carry paper. He responded with 20 years, 4%. Terms sold me. I got the property under market, and prices are rising. I expect this to continue for the foreseeable future. The downside to the deal is the property is rented under market and I had to inherit the lease.

How did you find this deal and how did you negotiate it?

The sellers were referred to me by a title company. The sellers stated they wanted a solid buyer and I was that for them. It was approximately a week and a half from contract to closing.

How did you finance this deal?

I put down 50K and the owners carried the balance.

Lessons learned? Challenges?

Always look for alternatives to make a deal more attractive. You never know unless you ask.

"You never know until you ask."

That is absolutely true and how I've found most of my deals. Well done!

Grats on the great financing! What are the current tenants paying for rent and what will you be shooting for once you can raise it?

@Carl Hebert they are severely under market at $1360. Current rate should be $1650+. The deal was good enough I opted to do it and suffer for the duration of the lease:)

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