Palm Valley FIX&RENT

[Edward Toomey V]

Investment Info:

Single-family residence buy & hold investment in Roanoke.

Purchase price: $69,500
Cash invested: $11,000

3bed 1bath ranch purchased using owner financing. Needed a new kitchen, carpet, and paint.

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

The owner was a land lord that was liquidating his portfolio and this house was in a flood zone making it hard to sell to traditional buyer. I offered the land lord an owner finance deal with a balloon payment that would let me get it cash flowing and make renovations before refinancing.

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

Listed on MLS for 180+ days

How did you finance this deal?

Owner financing: Sale price $69,500 with $8,000 down amortized 30 years at 4.00% APR with a 7 year balloon payment.

How did you add value to the deal?

Updated kitchen and flooring. Added AC to central heat.

What was the outcome?

acquired a house with an ARV of $105,000 for $69,500 and invested $11,000. Upside equity $24,500. Monthly mortgage payment wit taxes, insurance, principal, and interest is $433.17 and house has been rented for $1,100 per month since January 2018. At the maturity date of the loan we will have seen $50,000 in profit from rent and we can sell the house.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Sharon Crenshaw Wainwright Realtors