Making expensive houses cash flow

 As I am not a local I don't know if y'all do this all the time but I thought I would tell you about a deal last week we completed.

Large 5 bed 3 bath home for sale in a Blue Chip area.

Price had been reduced from 349K, to 319K to 309K and had just dropped to 299K.

A phone call to the realtor established the house was vacant, owners were elderly, wealthy and already living in their retirement home.

So rather than fight about the price I decided to adopt something I taught my students for years, "your price and my terms".

So our offer was at asking price with the sellers leaving 85% of purchase price in as a 30 year note with an interest rate of 1% above the current CD rate.

Final contract signed at 85% note, 30 year term at 1.7%.

Now you need a deposit of around 43K but for that you get $161 a week cash flow after all costs and mortgage payments in an area that is going to out perform most parts of the city.

That's a 19.4% return on your cash in and you end up owning a half million dollar house without ever putting any more cash in :-).

God Bless America ~ Dean

PS:  Did I mention they have reroofed and 3 new HVAC units as part of the sale :-)