Deal #6

Deal #6 I was watching a house that was a REO. I had to wait until day 16 to put in an offer being that there was a hold for owner occupant for first 15 days. I had my offer ready with my agent to be submitted on the evening of day 15.

Home is SFR 3/1 with 15 acres, and 3 car garage. Last sold in 2008 for a $143,000, I have an accepted contract at $59,000. House needs carpet, paint, appliances and I will have to replace broken pipes. Figuring rehab costs will cost about $10,000 or less. I am planning on using PML or HML to close the deal and then refi with the bank.

I already have it rented out (bank's request when I want to refi)starting Nov 1 for $995 a month and the tenants want to buy it in the next year or two and so I am going to Lease Option it with them at a price of $120k. . Collecting $5,000 down and 1st months rent, $400-$500 net a month for two years and $50,000 at purchase.

Also want to pay extra for half of the month of October if they could start moving stuff into the garage-but haven't closed on it yet. Trying to line everything up so the transaction is smooth.

It is hard trying to get it renovated because I don't own it yet. Trying to get it rented out it present condition. Need the funds to do purchase & rehab-PML or HML, so that the house is appraised higher for the bank and not quite sure if the refi will even be a go yet, which is delaying my closing process..... and if I can't refi??? Not quite sure what I am going to do having a signed rental Lease Option agreement where there definatley is cash flow, with a big payday$$$$$ Any thoughts?? :0)