This house came to us by a local wholesaler who knew the seller. The seller was in a sticky situation where he demoed the house and couldn’t afford the time and money to put it back together.
We acquired the house as a land contract with the following terms: $147,000 purchase price (more than what the house is worth !). 5 year term and took over making his monthly mortgage payments of $1108.23 per month. ARV is $250,000. You are probably asking yourself why would they purchase for more than its worth?! Cash flow is the answer! This property was produce cash on cash returns 40% +
Remodel budget was set at $42,000. The house existing was gutted to the studs so we updated all electrical, new insulation, drywall, plaster, flooring, doors, trim, kitchen and bathroom.
