How a Run Down House in a Good Location Can Net You $
A house at 605 West Hollywood in San Antonio TX may not look like much. But it has several things going for it:
It is in the neighborhood called Beacon Hill, which is about one mile from downtown and is rapidly appreciating. Many young professionals and young families are moving into this area. Rents and property values are going up quickly.
As with most of the properties ImpactInvestingTexas handles, this house was owner financed to a buyer.
When you put these two factors together, this average looking property turns into quite a cash flowing machine.
ImpactInvestingTexas purchased this home for $51,000 cash. Then, we used our marketing program throughout the city of San Antonio to find a qualified buyer with a good job and cash, but poor credit. We were able to find a good couple who actually are investors themselves. They have renovated and lived in properties before. Their only problem is a judgement on their credit. Once that is removed, they should be able to refinance the property and buy out ImpactInvestingTexas. That may happen in 3-5 years. So in that way, owner financing has one downside that we see – eventually the buyer will pay the property off.
But in the meantime, this is an excellent cash flow property. Bought for $51,000 cash, our firm receives a payment of $850 per month from the buyer we financed. We pay taxes of $1200 per year. Our net cash flow on this property is $750 per month, or $9000 per year. Thus, the capitalization rate on the property is…..17.6%. This is a typical return on these types of properties in San Antonio.
The bonus for our firm of course is that we are owner financing the property. So, we do not put a DIME of money into rehab, repairs or maintenance. The owner finance buyer does that.
This is a truly lucrative and safe way to invest in San Antonio. Have you ever tried to do owner financing in your city? jpicket
A house at 605 West Hollywood in San Antonio TX may not look like much. But it has several things going for it:
It is in the neighborhood called Beacon Hill, which is about one mile from downtown and is rapidly appreciating. Many young professionals and young families are moving into this area. Rents and property values are going up quickly.
As with most of the properties ImpactInvestingTexas handles, this house was owner financed to a buyer.
When you put these two factors together, this average looking property turns into quite a cash flowing machine.
ImpactInvestingTexas purchased this home for $51,000 cash. Then, we used our marketing program throughout the city of San Antonio to find a qualified buyer with a good job and cash, but poor credit. We were able to find a good couple who actually are investors themselves. They have renovated and lived in properties before. Their only problem is a judgement on their credit. Once that is removed, they should be able to refinance the property and buy out ImpactInvestingTexas. That may happen in 3-5 years. So in that way, owner financing has one downside that we see – eventually the buyer will pay the property off.
But in the meantime, this is an excellent cash flow property. Bought for $51,000 cash, our firm receives a payment of $850 per month from the buyer we financed. We pay taxes of $1200 per year. Our net cash flow on this property is $750 per month, or $9000 per year. Thus, the capitalization rate on the property is…..17.6%. This is a typical return on these types of properties in San Antonio.
The bonus for our firm of course is that we are owner financing the property. So, we do not put a DIME of money into rehab, repairs or maintenance. The owner finance buyer does that.
This is a truly lucrative and safe way to invest in San Antonio. Have you ever tried to do owner financing in your city? jpicket