Benjamin Mayo - Tarboro, NC
We got the deal following a lead from Zillow and sent it to Ron’s VA who called the seller and got a “YES.” We visited the house and got it under contract.
The ARV is $159,000. Immediate repairs are about $7,500. Therefore, we reduced the price to $152,000 on a Work for Equity rent-to-own deal. The mortgage loan balance is about $140,500. We purchased on a 10-year term for the loan balance at time of closing. The loan stays in the seller’s name.
We leased optioned for three years for $152,000 with monthly rent $1,228 with nothing going to principle. Down payment assistance is $100 monthly.
If the tenant buyer purchases at the end of the three-year term, we will profit $21,027…
- 10,864 backend
- 6,000 down payment
- 4,163 monthly rent
Remind you – this is with no money out of our pocket, except for closing cost (1st month prorated rent took care of that).