the current balance of mortgage on house is approx 105k. I can get house for a total of 118-120k. seller will carry a note for approx 7k, with sellers broker buying that note and me owing him. I would come out of pocket with about 5k. house needs approx 4k fix up to be tip top. based on comps house could sell for 135 or so. based on current rents in this area (WA state) house would rent for 11-1200/mo. after figuring taxes and ins. I came up with 2-300/mo cash flow. does this sound right, and if so, how could I make it better.
I’ve found a distresed property that needs about 4k worth of cosmetic fix up. comps at 148k-160k. could easily sell for 135 or so. seller has VA loan of about 105k balance. needs total of 120 to pay closing, back taxes etc. so far I have verbal agreement of 5k out of pocket, and her broker buying a note from her for 7k. this would be the 10k down. Even if I held and rented I’m looking at 2-300/mo cash flow. 1100-1200/mo rent. How could I structure with less out of pocket? This would be my first deal - would love to do it right.
Thanks for info, David
The deal at first glance does not look like a deal but please clarify the structure of the purchase so I can help.
What is your exit strategy? What area of the country is the property? and where did 200-300 monthly cash flow originate
Pat