Borrower is an experienced real estate investor who sought a business purpose 1st TD to purchase this SFR in Sacramento. The borrower currently makes $5,000 monthly from Airbnb rentals and the estimated rental income for the subject property is $1,710/month, which will more than cover the monthly mortgage payment. The Purchase Price of the property is at a significant discount compared to the value as the Son of our Borrower lives next door at 725 Harris and has a close relationship with the Seller and has already provided many improvements to the property. Now that the upgrades are completed the buyer and seller have agreed to a purchase price of $155k. The property is now rented for $1,800/mo.
The subject property is a ranch style 1,092 SF home with 5 total rooms and 3 BR/2 BA. The home sits on a large 10,890 SF lot that allows for RV parking. The exterior of the home was recently painted and a new fence was installed around the entire lot. The property also features a covered patio and a shed with laundry and water heater. The home has easy access to Interstate 80 as well as shopping, restaurants, schools and medical facilities. The exit strategy from our loan is a conventional refinance.
What we like about this Trust Deed opportunity:
- 678 credit score borrower
- Experienced real estate investor
- 10.25% annualized return
- 60.00% LTV on BPO Value
- $1,800/month rental income
- 6 months Guaranteed Interest