Rehabber looking to sell note on rental property

[ Follow Ups ] [ Post Followup ] [ CREOnline Cash Flow Q&A ]

Posted by erin on August 19, 2008 at 09:32:24:

I am currently rehabbing and holding as rentals, but I am hearing the market is not great if I leave my day job, which currently allows me to cash-out refi my rehabs on completion and keep going.

My thought is to use my equity lines to purchase and rehab the house, then create/sell the note on it instead of going though a bank. This will allow me to keep building rentals and allow for an avenue to go full time.

Example:
$50k purchase (good area with great schools)
$30k rehab
appraisal for $150k
rents for $1275/mo
create note for $95k and sell to note buyer

My question(s) are:
1) If I keep the purchase + rehab to 65 or 70% ARV and I intend to keep it as a rental
a) are note buyers interested in these?
b) if so, what are some typical note buyer rates for these?
c) pitfalls, concerns, etc

Other info:
currently hold 7 rentals with 0 foreclosures, 775 median credit score

Any additional thoughts/comments appreciated.

Thanks, Erin

Follow Ups:


Post a Followup

Name    : 
E-Mail  : 
Subject : 

Comments:

[ Follow Ups ] [ Post Followup ] [ CREOnline Cash Flow Q&A ]

CRE Online, Inc. © 2007, All Rights Reserved.
creonline.com