Completed Flip in La Mesa

A few months ago we took on a project to flip ourselves. Although I am in the hard money business and don't really take on many flips, when a "home run" property comes up, I can't help myself but to latch on to it (this was one of those deals).

The property was purchased for about $370,000, we put about $70,000 or work into this place. The property went on the market for $650,000 about a month ago and is in escrow now. 

I'm going to keep this blog posting short because the last one about this property was fairly long winded. 

Please see the completed pictures below; 

New loan in La Mesa

Here is a new loan in La Mesa that we are funding. The borrower is a very experienced flipper here in San Diego.

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