Rehab Deals California

Here's a great example of an exit strategy that succeeds in today's market

As we discussed there are generally three exit strategies for distressed real estate. 1) buy, repair then re-sell either quickly (to a cash or hard money buyer) or after three months to a traditionally financed buyer. 2) buy and sell quickly to another cash buyer. 3) buy, repair and rent to a qualified renter.

A property we currently have under contract at Rehab Deals California is; 13200 Gina Avenue, Moreno Valley, CA 92553, is a perfect example of exit plan number three: buy, repair and rent. It is $65,000 for a 3 bedroom, 2 bathroom that needs mostly cosmetic work: carpets, paint and some other repairs, landscaping and some fence work for the exterior. The total estimate to fix it up to rent is a maximum $5,000. So the total cost to have this property rented out in 30 days is $70,000.

The comparable rent for the area is $750 per month. This house would easily qualify for Section 8 housing and so the government would guarantee some of the rent. In Riverside County there is a 40,000 person waiting list to find this kind of property so it would rent fairly quickly. It would be wise to investigate this further when following the buy and hold route.

The yearly net income before expenses would be $9,000 a huge 13% yield. That return on investment doesn't include any future appreciation in value or increases in rent.

Watch the video on 13200 Gina Avenue:

 

What is your exit strategy in this real estate market ?

At Rehab Deals California we learned that the fastest way to sell a property is to find out what your buyers want. Of the many considerations  we need to learn from our buyer, exit strategy is one of the key points to learn. Why is there an advantage to knowing this? What are the different exit strategies your buyers are looking at?

The most popular exit plan I'm hearing from my buyers lately is the buy and hold scenario. This means they want me to find them a property that needs some work and fix it up enough to rent it out to someone while holding on to it for some time in the future.

 The next strategy is the fix and flip. That's when you find a distressed property (the worst the better) buy it way below market value and repair it to an excellent condition for a fast resale.

Whichever way your buyer decides to follow, our plan at Rehab Deals Caifornia is the same: Buy at the lowest price possible!  What's your take on the market?

What is Rehab Deals California?

Rehab Deals California was started by me, Mark Cohen, to bring below market priced distressed homes to you the real estate investor for huge money making opportunities. Whether your strategy is to buy and hold, buy and flip or buy and fix for sale, we will find properties that fit your individual plan.

I also have a great desire to contribute to our country's financial recovery by cleaning up and disposing of these so called "toxic" assets. Fixing up these devastated areas may provide housing for those buyers in need of a place to rent now that they don't own their home anymore.

Check out our ever growing inventory and find out how to make money in real estate now!