This Thanksgiving we have a lot to be thankful for.
We are off to see the family to gorge ourselves on Turkey in the land of the Pilgrims and Thanksgiving, i.e Plymouth County, Mass. And yes, we will probably walk by the famous rock on the shore of Plymouth as well.
#2. The Cowboys
The Cowboys are dominating football this year with a couple of rookies leading the offense.
We've been rocking along acquiring assets. And just like the Cowboys have their rookies, we are rookies as well. This is our first year to be buying notes and we've been tearing up the field. Here is our latest acquisition.
The Sweet Deal
Last week we closed on a defaulted note for a duplex in Cincinnati. It is a solid brick structure in a great neighborhood. It even has a new roof. Rents are $1000 per door. As-Is value is $117,000. ARV with leased up tenants is $165,000-$180,000. Unpaid balance on this note is over $180,000. We picked it up for $72,000. It is a little more than what we would normally pay, but my realtor is familiar with the area and he was very insistent that I pick it up because it is a great neighborhood and there is a lot of activity going on there. So there you have it, or I should say there we have it. There aren't too many options on this note in regards to avoiding foreclosure. There were two borrowers and one of them is deceased, which makes a Deed In Lieu complicated because of existing family matters. So we will go to foreclosure. If we should acquire the property at auction, then we will do some minor rehab and upgrade the units to get rents up to $1,100. The CAP rate for that area is 8%, so we should be able to sell it as a turnkey for $165,000 or so. That means we'll double our money. The timeline for this? We are looking at a year for all of the legal work, rehab and seasoning of the leases. Yup, definitely a sweet deal.