What Is This Called
There is a home selling for 50k worth 73k. It's a section 8 rental property. All set needs no repairs, the seller is an investor in my RE Club.
Well just wondering what this type of deal is called.
I am buyin the proerty for 50k, but I am financing the property at 90% of the retail value 73k, so I cash out at closing.
Just wondered what this is called, any disadvantages to something like this?
JB
[addsig]
I've seen several deals this way...never got to buy any (too slow).
If you don't mind me asking, can you post some of the numbers: Rents, expenses, maintenance...
Congrats.....
Dave
"If you don't mind me asking, can you post some of the numbers: Rents, expenses, maintenance... "
Well I am buying for 50k, it's worth 73k.
Hud rate for a 3 bed room here is 650-700/mo I am looking to aquire a couple more of these from the same guy, so then I will be looking for a management company, I've heard rates vary froim 7-15% of rent, but I have heard it's well worth it. Well, that is if I get a more favorable rate than 15% !!
But what with the cashout whoch on this one should be around 10k...that should cover my expenses for a while, and give me a chance to put money into other properties.
JB
[addsig]
I would like a few hundred of these deals too. They are called kick butt deals or sweet heart deals or wow deals. How about cash back at closing deals? It is not sub2 as you are getting a new loan and it aint wholesaling as you are the buyer. Just a super deal. You must be superman or something. Deals i get for that % of value need at least 10 grand in rehab. Congrats too. Do your homework to make sure of condition and liens etc
Good LUCK and Thank You
Hope this helps some
Ted Jr