Here is a new project that is about to receive funding. The rehabber is buying this house as a short sale. He is utilizing leverage from me in the form of a hard money loan.
This property is currently a 2 bedroom 1 bath house. The rehabber is planning to add a master suit and bedroom to this house. Making it about 1,300 square feet when it's done.
The purchase price is about $175,000 and I am doing thew hard money loan at about 80% of the purchase price or $140,000. The rehab is should cost approximately $50,000 and will take about 4 months. I estimate that this property should sell for about $330,000 when it's done.
There is one thing that I really like about this property that does not show on paper but I'm sure will show on the MLS when the property goes for sale. This particular property is zoned for 3 units. I like these types of value adds because it give the perspective buyer an opportunity to make money on the back end. When someone buys this house, they will know that in the future they will be bale to do more with this property. These days no one know what is going on with their retirement plans or pensions, properties like this give the buyer an alternate source of future income.
Take a look at these picture of the before;
This property is currently a 2 bedroom 1 bath house. The rehabber is planning to add a master suit and bedroom to this house. Making it about 1,300 square feet when it's done.
The purchase price is about $175,000 and I am doing thew hard money loan at about 80% of the purchase price or $140,000. The rehab is should cost approximately $50,000 and will take about 4 months. I estimate that this property should sell for about $330,000 when it's done.
There is one thing that I really like about this property that does not show on paper but I'm sure will show on the MLS when the property goes for sale. This particular property is zoned for 3 units. I like these types of value adds because it give the perspective buyer an opportunity to make money on the back end. When someone buys this house, they will know that in the future they will be bale to do more with this property. These days no one know what is going on with their retirement plans or pensions, properties like this give the buyer an alternate source of future income.
Take a look at these picture of the before;
