WIIRE 003: Behind the Scenes: Seller Finance Acquisition & Crazy Tenants

Welcome to episode three of the Women Invest In Real Estate podcast! Today's episode is a behind-the-scenes look into each of our businesses and what we're currently up to. 
 

Amelia’s Current Projects

I recently bought a duplex in West Des Moines, but I didn't have to do a single thing to it so I never really think about it as a purchase. But prior to that, I hadn't bought a property since August of 2021. I'm currently in the works of purchasing a dilapidated triplex in my small hometown. It needs a full gut and a lot of exterior work. The way that I found this triplex was I had someone apply for one of my other rental units, and the reason that he put for moving from his current residence was that his current landlord was selling the property. So I figured out who that landlord was and I reached out to him asking if he had any other properties that he was looking to sell.

Despite it being a small town I hadn’t heard of this seller. I found his phone number and it turns out he was interested in selling another property. I met him, took a look at the property, waited about a week, and sent him a seller-financed offer. The offer was for $48,000 on a 5-year term; with five equal payments of around $9,600 each. Obviously, we would have no early repayment penalty, because the plan with the property would be to fix it up and then BRRRR it out. At that point, we would refinance into a conventional mortgage after all of the rehab was done. 

This property landed on a purchase price of $50,000 and will likely need between $50-60K to rehab it before I go for the refinance. Right now I think it will appraise for between $115-120K and then the rent roll will be around $1,875. 

This particular property will be operated as a long-term rental. While I love mid-term rentals it is a really big property and I don’t want to have to furnish it. There's also something to be said for the stability of still having long-term rentals, which makes me feel good at night. The other thing with this property is that two of the three units are vacant. With this being my hometown experiencing a major housing shortage it feels good to be able to provide quality housing to the community. 
 

Grace’s Current Projects

I have my eight-unit rental property that we purchased back in December and have been fixing it up DIY style. As each unit turned over we rehabbed them and we now have three out of eight units left. We are working on all three at once and they will all be mid-term rentals because their location is so close to the hospital. They're each one and two bedrooms and my one-bedroom requests on mid-term rentals on Furnished Finder right now are insane. 

This time around we did decide to hire out the painting, which has been absolutely amazing. We also are hiring out the window and siding replacements for this property. With this property being mid-term rentals we pay the utilities on these and we have decided to remove some of the windows since there was such a large quantity of them.

I’m hoping to wrap up this property and have it appraised in the next four to six weeks so we can lock in our rate. We will make sure that all of our numbers and income are together, and that the property looks top-notch for the appraisal so I can get top-dollar on that property.

With no ‘next’ projects in Grace’s pipeline, she is excited to enjoy some R&R over the summer and really focus on what she wants to do next!
 

Thank you so much for joining us on this behind-the-scenes look at our real estate investing businesses. Catch you next time!

 

Resources:

• Get the scoop on Mid-term Rentals