Diary of a BRRR in Deltona Fl from Ct

[Eric Munson]

I have a 2/2/2 under contract in Deltona Florida. The property was inherited by 3 grandkids who have owned it for a little over a year. The monthly bills were a problem for them as they did not have the money to keep paying the holding cost. I started discussing possibly purchasing from them them about 8 months ago when they were much less motivated. 

Fast forward 8 months and I have it under contract and they were willing to hold a note for 100% of the purchase price at 0% int for two years. These folks are friends of the family and we are looking for a win-win.

The title company has the P&S agreement and is performing the title search at this point. I am supposed to receive a prelim settlement statement tomorrow.

The purchase price is $45,000. and needs $10k in rehab to make rent ready. ARV is $85-90k. Rent will be $900-950 mo. I will be using a PM.

This is my first out of state purchase.

[Jay Hinrichs]

@Eric Munson

  that's about right on price and rent might be a tad high based on my lending experience in Deltona... most wholesale deals are 40 to 60k but those are 3 bds and same vintage of course.. but the 0% and no money out of pocket are a super way to buy.

When I had my unfortunate experience of ending up with a couple hundred SFR's that I foreclosed on I sold many of them with 0% interest.. of course we got monthly payments and higher than normal the homes were negative cash flow for the buyer but they were free and CLEAR in 3 years... so it was a win win