Seller Financed-Package Deal
We bought this property in a 2-property package deal (the other property being the seller financed fix n flip) on April 1st, 2021.
We approached a seller who had these two properties that he used to use as rentals. He moved a few hours away and didn't have the time or energy to manage them, so they sat vacant for a few years! Since both houses were paid off, we proposed seller financing and he was all in!
We bought this property at a purchase price of $150,000 with $0 as a downpayment (I know, its crazy!). We had to do some minor renovations to get the house rent ready: We redid the floor throughout the house, repainted all of the interior walls, redid the bathroom, and repainted the kitchen cabinets! We put in some sweat equity (did a lot of the work ourselves) so we we're able to save money: we ultimately spent $10,000 on this remodel.
Our monthly cost on this property is $1,139, which includes principal, interest, taxes, & insurance. We rent out the property for $1,650/month, achieving a healthy spread of $511/month. We hold another $200/month for repairs + maintenance and future vacancies, bringing us a net monthly cash flow of $300/month.
Our cash flow of $300 or $3,600/year, will yield us a cash on cash return of 36%!