Author Topic: My Long Distance Lease-Option-Flip Project  (Read 15354 times)

sammybiker

  • Bristles
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    • Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
Re: My Long Distance Lease-Option-Flip Project
« Reply #50 on: February 27, 2016, 01:43:13 AM »
Hey folks,

An update from sunny and hot SE Asia.

Lease Option 1:  No issues, resigned the lease-option for another year - no late payments, good tenant communication, all good.

Lease Option 2: Perfect, no issues. 

Other properties:  Nothing major, dealing with my first vacancy, super smooth actually - time in/time out is exactly (4) weeks.

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New stuff:  About two weeks after my last update, a couple deals fell into place, both within a day or two of each other.  I proceeded with them and scrambled to put together some private money for them.  This worked out really well and I got the opportunity to pull in a new private investor that had signaled interest earlier in 2015.  Closed on these homes both in late Jan-16 and below are the details.

New Property 1:  3bd/2ba 1500sq ft, already rented with an excellent tenant at $650/mo.  Purchase price $26k, ARV ~$45k.  Outside of my normal great school district but a great part of town and a solid deal.  No immediate maintenance/repairs required.  Plan is to keep this as a rental through the duration of the existing lease and then roll the current tenants over to a lease-option later this year (they've expressed strong interest in purchasing, their credit and income is good/FHA qualified).









New Property 2:  3bd/1.5ba 1550sq ft, my first REO/bank purchase.  Purchase price $42.5k, ARV $85k.  This one is my standard great school district.  Renovation budget looking around ~$8k but I'm still assembling the full scope - I was a little slow getting the utilities on and the project manager engaged.  The plan is to put this one on a standard 2-year lease option, $950/mo and purchase at $89k.







I'll post more updates as I put together the full scope and numbers become more concrete.  Photos too.

No more purchases for the foreseeable future (seriously this time) as I throw rents + W2 towards quick private money payoff (<4mo) and get stabilized for eventual W2 reassignments later in 2016 (again, likely USA/Texas). 

Belated happy new year MMM.
« Last Edit: February 28, 2016, 04:58:10 PM by sammybiker »