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Hey everyone,
Just came across a home i can buy subject 2. The home was just recently renovated by a rehabber, the people that bought it are now moving out of town. There is really no equity. BUT, it has a 4.75% FHA loan on it. That is the only reason why I would consider it. Plus the house will cash flow $150-$200 from day one. what do you think?4.75% fixed? New rehab with cash flow? I think that’s excellent. Just make sure you check everything out.
Check out the trusts for wrapping the note and resell it. Get a nice down and keep the cash flow for a while with their interest rate variable.
Maybe put a balloon of 5 years for them to refinance if you want to be cashed out. Some people just want the steady cash flow.Check everything out and then GO for
Put a contract on it and then do the due diligence.
Good Luck!
If you have one month of vacancy, it will wipe out all cashflow for a full year.
If the AC goes out or a tenant trashes the places, it could wipe out cash flow for several years.
This deal is SKINNY — be careful.
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