Purchase Price : $310,000
Loan Amount: $217,000
LTV: 70% of purchase price
Term: 6 months (this loan will most likely pay off in 3 months)
La Mesa, CA
Interest Only Payments
We are paying the investor 11% interest on this loan.
This is a very unique property for San Diego because of the fact that it has a 1 bedroom unit attached to the house (with a full kitchen). This really give the next owner a great advantage because they are able to rent this unit out for approximately $1,100. This will help them a lot with payments.
The way that I look at it is if we have to take this house back in foreclosure(most likely won't happen), we could rent the house out for $1,700 and the rental unit for $1,100. This would give a $2,800 income on this property that we would be taking back for $217,000. After calculating $226 for taxes and insurance monthly, you end up with an 14.2% cash on cash return. This is a great investment, I would buy this house for $217,000 in a heartbeat if it was on the market for that.
Alexander (Sasha) Favelukis
Priority First PF, LLC
