[Lynette Wilson]

Lynette Wilson

Just want to share with fellow members a recent deal. I acquired this property while attending a garage sale to pick up some end tables. Home is located 6 houses down from my personnel residence. It was listed on MLS with no success as the current homeowner started work on a bathroom and never finished. Homeowner was behind 3 payments. After analyzing the deal I offered to purchased “sub2” as long as they made the back payments. They agreed. My initial intentions were to keep it as a rental but the current tenant loved the house/area so I gave her a high sales number and she agreed.

The numbers:
Purchase Price- approx. $115K (sub2)
PITI- $1,112
Rehab- $11,600 (foundation was repaired after securing an option fee to purchase property of $3K, cost $5,200)
Rent- $1,500 (leased for 8 months)
Sales Price- $160K
Net Profit – $29,200

You can view pics of home by going to IBuyHousesin7Days facebook page. It is titled Arlington Rental with a date of Nov 18. Tried to submit pics on forum but have been unsuccessful.

[Nickolas Bubolz]

Nickolas Bubolz

Congrats on the deal. I am working on my first subject 2 deal right now but looks like it won’t be successful. The homeowner just sent me his first and second mortgage and notes. The second is for $75k and adjusts every 5 years.

[Jackie Lange]

Jackie Lange

Hey Rocky

Those are some great numbers. Congratulations on another fantastic deal

[Robert McWhirter]

Robert McWhirter

NB,
Tell me why a sub2 wouldn’t work and how long before
the second adjusts again.

[Nickolas Bubolz]

Nickolas Bubolz

The second adjust every year in June. However, it cannot adjust more than 2% each year and the max it can go to is 10%. I read the Note myself to verify this. I could possibly word the loans to be ballooned in 3 years. Any suggestions or just stay clear?

[DON WEDE]

DON WEDE

I would stay clear.
Don Wede