Quincy Smith Rehab Deal

 

Quincy Smith Rehab Deal

2nd Exodus Investments, LLC in Miami, FL

While searching for areas of interest on the HUD site I came across the property on Berriedale Drive. Initially I thought the property would be easy to rehab and sell, however I ran into some issues with my contractors, the house, and inspections therefore we ran weeks longer than anticipated. Unfortunately I was unable to sale the property as fast as I planned on. During the last open house a buyer asked if I would be willing to do a \"lease to own\" until she could get her credit high enough and get a reasonable interest rate on a loan. We agreed on a 36-month lease with a $5,000 non-refundable option fee at $850 monthly rental rate. She contacted me during the 3rd year and informed me her son was moving away to college and she was preferred to move closer to him, forgoing the purchase of the house. I extended the lease past the original ending of Aug 2017 to March 2018 to give her enough time to stay for the ending of the school year and time for her move. I received an additional $850 per month for 42-months which equals out to $35,700. This was not all profit because I had taxes over the years for $3,300 and another $5,000 to get the house ready to put on the market. ** So to recap and Breakdown of how the Money Flowed ** PP: -$25,025 Rehab: -$19,000 Taxes: -$3,300 Make Ready: -$5,000 Upfront Investment: -$52,325 Sales Price: $87,000 Option Fee: $5,000 Rental Income: $32,400 Total Income: $124,400 Net Profits: $124,400 - $52,325 = $72,075 (minus $2,550 to the seller for closing cost) $69,525 give or take a few dollars

Rehab Details

Property City: Fayetteville
Property State: NC
Purchase Price: $25,025
Repair Costs $19,000
Sale Price: $124,400

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Case Study

How did the FortuneBuilders team and resources help you to accomplish this deal?

Definitely, the Rehab documents saved me on this deal, especially the contractor package properly filled out and explained during the hiring process. This process was my saving grace. So please make sure you have your contractor sign the 6-Critical Documents I\'ll be the first to admit in my excitement to get started on the Rehab I don\'t like to slow down to do this step, but it will save you money if things go wrong.




Before & After Photos