I made it today:
Asking Price:
349,900 - Flexible - house in good neighborhood - comps - 399K
Needs alot of work, but basically it’s laziness that has let this house go, but it is in very good shape, foundation-wise, structure good, nice yard (once it’s cared for), hard woods throughout
3 br, 1.5 bath, raised ranch, EIK, formal dining, 1 car attached garage
Offer: 265,900
Seller hold 2nd mortgage note = 53,180
@11.75% for 12 months
Seller to pay Buyer
Repair Credits at Closing = 9306.50
[3.5% of Purchase Price]
Projected ARV = 370,000
Expenses:
Debt Service 265,900
Closing Costs 14,000
Repairs 5,000 (14,306 total -credits-)
*Holding Costs 12,193
Gross Profit 72,907
Net Profit 51,034
*Holding Costs based on Interest Only Loans for 1st and 2nd mortgages - 1st @ 8% 2nd @11.75%
For 6 months
1st - 1511.47 X 6 mos
2nd - 520.72 X 6 mos
Total = 12,193.14
Taxes - I figured that at closing, 6 mos will go in Escrow, so I will not have to worry about paying them during my holding period (that’s if it takes 6 months to sell).
that’s it.
Seller gets - 195,436.50 at Closing
Seller gets - 53,180.00 2nd Mortgage Note @ 11.75%
[2nd note to be paid in full in 1 year - no prepayment penalty]
