Scenario:

·         Owner had a very high price objective for property

·         Negotiated to reach final sale price

·         Seller to hold 2nd mortgage @ 0% interest, single  payment 5 year balloon

·         Appraised for higher than the sale price

·         Located 85% LTV financing

·         Low out-of-pocket expense

·         Received Cash/Check back from closing

Property Performance Summary:

·         Positive monthly cash flow after closing

·         On-sight management that takes care of all services

·         13% cap rate 43% Cash-On-Cash Return  

·         1.73% Debt Service Coverage Ratio