Before Pictures of The Front Yard Stink House Flip

Front Yard Stink House Details

Danny Johnson / 13 comments

This is the ‘Front Yard Stink’ house. Named so because my wife was disgusted by the smell of the house even though she was standing in the middle of the front yard and I had just opened the front door. You could smell it from that far away. We closed this one Wednesay.

I was considering wholesaling this one, but decided to fix it up and sell it with owner financing instead. The seller had agreed to owner finance the house amortized fully over 3 years at 5% interest. We paid all closing costs including agreeing to pay the property taxes for 2011.

I am still working up the scope of work and getting bids for this job. The post will be updated with the scope of work and details as soon as they are ready. Sorry to keep you waiting.

House Details

[Source: Absentee Owner Postcard]

This is a 3 bedroom, 2 bathroom, 1000sf house that was built in 1977.

The Numbers

Purchase Price:$19,000
Settlement Fees:$1,271 (title policy, closing fee, insurance)
Estimated Repairs:$20,000
Resale Price:$79,000 owner financed

Scope of Work

Still being worked on… Will update soon.

Materials Specification

Still being worked on… Will update soon.

Before Pictures

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13 awesome responses to “Front Yard Stink House Details”

  1. Justin on

    Hey Danny – I think you are owner financing with the seller because you plan to owner finance with the buyer on the other end and if so your spread will be great than if you went with a PL? Looks like you’ll spend about $1,500 in interest over the 3 years with owner financing rather than $3,300 in interest & closing with a PL. Is that correct? If so, very cool.

  2. Justin on

    One other question – how are you financing the rehab, holding & selling costs?

  3. Shane in Weatherford on

    So, deals like this are what you’re referring to when you talk about your retirement scheme? How do you structure your “mortages” to your buyers on these houses? Terms? Can you “short and sweet” the paperwork/title process for these deals in TX? If not, it’s ok. I would assume attorneys are a must on both sides…as my parents effectively “lost” the house they “bought” with owner financing because the seller owed back taxes, and there were “loopholes” in their handwritten contract.

    Thanks as

  4. Shirley Farrington on

    If you do a lease option and then sell your option to a lease purchase buyer…….should you or the the buyer get Title Insurance. Will it work with lease purchases?

    Something else; have you found that all lenders of an underlying loan, when using a wrap, agree to to it? Or do some not allow it?

  5. Elizabeth Blazina on

    Danny, What was the negotiated terms with the seller on this transaction? And why do you think they went this route?