Updated over 6 years ago on . Most recent reply
Subject To and Lease with an Option to Buy
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $9,675,000
Cash invested: $3,000
This Ranch/Rambler is 1928 SF, with 3 bedrooms and 2 bathrooms. It also has 10' by 24' covered back deck and a large living room, an eat-in kitchen and a converted garage and is currently being used as a bedroom, but can also be an extra living area.
What made you interested in investing in this type of deal?
We bought this house Subject To: when the owner was about to loose it to foreclosure. I love Subject To deals!
How did you find this deal and how did you negotiate it?
This particular deal came through a CraigsList add that we ran. Since she was about to loose the property, the negotiation was pretty simple. We were going to give her a little moving money but just before closing, some extended family decided to take the Tank less Water Heater out so I told her that her walking/moving money went with the water heater.
How did you finance this deal?
Subject To Existing Financing
How did you add value to the deal?
We replace the tank less water heater, some appliances and painted a few rooms of the home.
What was the outcome?
We listed the home on Craigslist as Lease with an Option to Buy and had the property off the market in less than a week. The current renters are coming up on their first extension of the lease and have been great tenants since moving in.
Lessons learned? Challenges?
Nothing that I didn't already know.
