Did it Again
The Basics of the Deal:
“Did it Again” was purchased for 36K and offered us the opportunity to buy a property with tremendous upside both in value and in rental income.
The property actually has a nice in-law unit in the rear.
The front house is a 3/1 with a 2/1 in-law setup in the back for a total 5/2.
Expected and Initial Plan:
Our original estimates are 10K for repairs and we estimate that we would rent the property for $1,095-$1,195. We expect the repairs to take 2-3 weeks.
Actuals:
We just closed the property and have firm bids for repairs. We will update actuals as we move forward and list any surprises should they arise.
Current Status of Property:
The best news about this property is we already locked up our passive investor for this property. They will be using their Self Directed IRA and they are very happy to be out of the stock market and have the security of a repaired and leased property.
We will secure the investment via a 40K First Trust Deed once the proeprty is repaired and leased.
Lessons Learned:
We secured this outstanding deal via an established relationship with an REO agent. The agent new we could close and called us first after an initial escrow blew up.
Remember that buying during the holidays is great for securing value but it is a little slow to lease so make sure you have extra time in your plan.
Leveraging Self Directed IRA as a source for Passive Investors is a Win-Win for both parties.
Grade the Deal and Why:
We give this property an A+ as we will have approximately 8K in the deal and receive over 4K a year in expected cash flow for a return of 50%+.
Future Plans for Property:
The property is in a great area and is the worst house on the block so we look forward to keeping this property for the long term.
