Subject To Purchase - Owner Finance Resale
Investment Info:
Single-family residence buy & hold investment in Kansas City.
Purchase price: $42,023
Cash invested: $500
A business partner and I purchased this property, subject to the existing financing, for no money down. We did pay some closing costs to get the paperwork done and in order to get the deed into our LLC. From there we sold it, as is, on a contract for deed to a very grateful buyer for $48,000 with $6,000 down and they made payments to us at $600/mth (PITI). The interest rate we charged them was 6.03% and their term was about 10 years. The buyer defaulted after about 18 months and we then sold the property again, as is, to another very grateful buyer on a contract for deed; this time for $52,500 with $5,000 down and they made payments to us at $700/mth (PITI). This time the interest rate was 6.99% and their term is about 8 years. The COC ROI is high and we didn't have to deal with a contractor or a property manager. Creative financing and seller financing is such a great strategy for buying & selling SFH's. :)