Purchase Price: $205,000

This property was for sale by the owner, sitting on zillow for 60+ days. This was clearly a distressed property. The seller was tired and did not want to manage her property. Had been reached out to many times by wholesales, and we showed her our current portfolio to build trust and had an in-person meeting to secure the deal.

The seller asked for a $212,000 purchase price and wanted it in cash. We offered $205,000 with no money down $800/monthly interest only payment. The interest rate is 4.6% with an 8-year balloon. We closed in 8 days. No lenders, no banks, no down payment, just title to deal with! 

This deal reminded me that the purchase price is the least important number in this transaction. This has an 8-year balloon and the equity will significantly increase if I did not do anything rehab to this deal. The seller got a great deal and will get passive-income based on the interest until I pay her out! 

Renovation: $25,000

ARV: $325,000

Rent: $2,000

3x2

SQ/FT: 1,600