Deal Breakdown - Upstate SC - April 2025
We wrapped up another one this week - a straight forward bread and butter wrap with seller finance SFR - 3BR/2BA - 1288SF on a small city lot PP: $84,000 Rehab: $40,000 Private Lender Loan: $125,000 plus 2pts, 2 yr term with option to extend 2 yrs This was listed on the MLS. I ran my #'s and made my offer. It took 8 weeks but the sellers eventually came down to my price. Sale Price: $199,900 Down Pay: $25,000 Seller Finance: $174,900 @ 10% for 360 months Monthly Pay: $1,535 Cash Now: $25,000 Cash Flow: $260 Note Equity: $47,500 If this was a pure flip, we'd expect a retail sale at $185k and a net profit around $33k. The lifetime value of this deal will be: Down Pay: $25,000 Cash Flow: $6,240 Proceeds Note Sale: $21,000 (Note Balance Discounted to 12% Yield) Total Proceeds over 2 years - $52,000 The note sale at a discount is a loss which also reduces our basis for capital gains