2 down, about 15 to go to hit my target goal.
Ran into an ad on Craigslist for 3 rental sfr’s in a low income area. All 3 have long term tenants in them and a history of paying on time.
When I did my research before I called the guy, it turns out that I used to go to the same church as him and he taught a class I took in college.
So I called him and got him to agree to owner finance the entire amount on a 6 month balloon for 2 of them, and the third I am still deciding on because it has a board up on both sides.
2 properties worth about $30-35k each, purchased for $20k each on owner financing so I can refi at 60% ltv on my own financing. One renting for $550 and the other for $700.
Good equity and good cashflow. Now I need another $200k in equity in the next 2 1/2 years to reach my goal.
Congratulations! The numbers look good! You’re on the way.
Mike
I’d like to pick up the third for even cheaper, but having a board up on both sides makes me nervous, and I don’t know if I could get it insured, I heard that’s a problem. He told me he’d sell me the third one which is a potential 3 unit for $14k.
One unit is rented for $300 with the same tenants in it for the last 15 years, and the top unit is empty. The 3rd unit was the garage, and had previously been used as a 1 bedroom rental, but needs some work (probably $5-7k to be ready). But total, the possible rent could be $900-1000.
Look into picking up the 2 boardups on either side, do a reasonable rehab, and rent . Assuming this is an area you feel is worth investing in.
jmd_forest
Wow congrats, good numbers.
Boarded up windows actually get me excited. If you have trouble with insurance, foremost has a “vacant and boarded up” policy, pricey, but will get you by until you get your rehab done. I would be more worried about the bank backing out, but if he will finance them, your golden.