Posted by Joseph on July 09, 2003 at 24:56:12:
The house is in an area where comps come in at 155 to 165k for this type of house.
Based on the present conddition of the house, it is worth approximately 140k. With 5k in repairs, the ARV is approximately 165k.
The current owners owe 169k (they got a 125% loan on their property 1 year ago). The first is 129k with interest and penalties. The second is being reduced to 10k. So my total obligation is approximately 140k.
I have already sold it to a TB as a LO for 175k 12 mos. from now, so my end profit after it is refinanced should be approximately 25-30k.
The TB is going to give me 1400 per month rent. I will discount it 5% if he pays early. So the monthly cash flow will be approximately $250.