Cash Out Refinance Home #2

16111567_10105369299432930_170518433_n.jpg

All of our research has paid off!  This home was sold to us by an elderly lady who has owned it since 1985 and she had tenants in place.  The home needed minor repairs and foundation.  It was an easy fix and we have put some great tenants in place!  Cashflow 101

The seller was happy with such a quick and easy sale, we put some Sweat Equity into the home and everyone wins.

We paid $45k cash for the home and asked our banker to put a lien on the home afterwards with a Cash-out refinance. 

The numbers: 
Purchase Price: $45k
Rehab $6k

Cash out Refinance: $45k
Rent rate: $900

Market Value: $90K
Equity: $45k