Hot deal in Memphis
I found a property in Memphis offered up by Fannie Mae. It is now under contract. I have a 10 day inspection on the property.
4 Bed 2 Bath
Neighborhood: B+
Crime Rate: Safe
Schools: Under average
Size: 3400 sqft
Original Listing Price was 225000
My Accepted Bid was 180000 after heavy negotiating and bidding by my realtor.
Earnest Money Deposit: 18000
Repairs 15,000
Most repairs were already done
Terms: All cash offer
I have found 3 properties around the same size in 3400 SQFT+- 10 years construction date that are less than 1 mile away that sold at the following prices in the last 6 months.
$290000
$295000
$345000
However, I still see that there are some houses selling in the neighborhood on Zillow for about 170000 - 225000. (I'm not sure if they need repair or not)
I am roughly estimating that my ARV is 290000. I'm taking the lowest just to be careful.
My plan is to
1. acquire via hard money with 10% down rent it out and then refinance to get all cash that I put in the deal out via a portfolio lender or delayed financing. Please let me know if my plan sounds solid.
Exit plan: Wholesale if I cannot obtain financing (However I have excellent credit and income to back it up and have cash reserves in the bank).
I have bought lots of property before retail :(, but this is the first time I am trying out a strategy like this with such a good deal and lots of equity. I'm trying to make sure I cover all my bases.