Why I liked it
It was a ground-up build in the #1 school district in the region. I was able to get it under contract with a small amount of earnest money and didn’t have to worry about financing the full purchase for another 6 months or so.
Deal structure
The original plan was to purchase with a conventional loan and hold long-term as that area continues to grow.
When it came time to do the financing, I knew I’d have a lot of troubles with a conventional loan due to my recent job change and out-of-state move. But the immediate cash flow numbers only worked with low interest rates.
I planned to just back out of the deal since I wouldn’t lose anything, but then I looked at the neighborhood comps and decided I could flip it and make great money. So I used my planned cash for a down payment and got a hard money loan on a 3 month term for the rest.
Deal outcome
Just before I listed the property, an identical house down the street sold at a higher price than I was planning to ask.
Given that we now had a pretty darn good comp, I listed and sold it at the same price as the house down the street, closing in about 2 months from the original purchase without doing any rehab.
Projected Numbers
Purchase: $217,700
Rent: $1,500-1,600
Actual numbers
Purchase: $217,700
Sale Price: $272,000