| to be sold without reserve! |
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| Hands-off, profitable, and financing provided: |
- Hands-free, headache-free rental property with positive cash flow and property-committed tenants!
- Own this property without obtaining new financing. Simply assume the 1st mortgage with no credit check, no qualifying & no personal liability
- You are bidding on the down payment / equity buyout for an income-producing property valued at $130,000 with $60,152 in equity that is being sold without reserve!
- 7 year tenant with recently renewed lease pays $1,115/month rent.
- Earn a net profit of $318/month from day one with no personal liability, no work!
- Strong potential to refinance and get up to $48,000 cash back.
- The dream deal for the “hands-off” or “long distance” investor.
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| Your income will increase by $318/mo if you win this auction. |
| Monthly rent : |
$1,115.79 |
| - Assumable mortgage payment with no qualifying |
$797.75 |
| - Taxes (n/a – included in mortgage payment) |
$0 |
| - Insurance (n/a – included in mortgage payment) |
$0 |
| - Maintenance (n/a – tenant pays all maintenance and upkeep) |
$0 |
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| Your net monthly income by winning this auction: |
$318.04 |
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| Your net worth will increase by up to $60,000 if you win this auction. |
| If your winning bid is: |
Your net worth increases by: |
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| $100 |
$60,052
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| $1,000 |
$59,152
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| $5,000 |
$55,152
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| $10,000 |
$50,152
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| $15,000 |
$45,152
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| $20,000 |
$40,152
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| $25,000 |
$35,152
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| $30,000 |
$30,152
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| $35,000 |
$25,152
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| $40,000 |
$20,152
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| $45,000 |
$15,152
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| $50,000 |
$10,152 |
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| $55,000 |
$5,152 |
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How did we calculate the increase in your net worth in this chart?
Increase in net worth is calculated as the appraisal value of $130,000 less the assumable 1st mortgage of $68,847 less your bid amount. |
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| You will earn up to $121,000 in 5 years if you win this auction. |
| If your winning bid is |
Estimated value in
5 years |
Approx. balance on 1st Mortgage
in 5 yrs |
Equity
gained |
Profit received from monthly rent |
Total
5 year
gain |
Average annual return |
| $100 |
$165,916
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$63,053 |
$102,863 |
$19,082 |
$121,845 |
24,369% |
| $1,000 |
$165,916
|
$63,053 |
$102,863 |
$19,082 |
$120,945 |
2,419% |
| $5,000 |
$165,916
|
$63,053 |
$102,863 |
$19,082 |
$116,945 |
468% |
| $10,000 |
$165,916
|
$63,053 |
$102,863 |
$19,082 |
$111,945 |
224% |
| $15,000 |
$165,916
|
$63,053 |
$102,863 |
$19,082 |
$106,945 |
143% |
| $20,000 |
$165,916
|
$63,053 |
$102,863 |
$19,082 |
$101,945 |
102% |
| $25,000 |
$165,916
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$63,053 |
$102,863 |
$19,082 |
$96,945 |
78% |
| $30,000 |
$165,916
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$63,053 |
$102,863 |
$19,082 |
$91,945 |
61% |
| $35,000 |
$165,916
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$63,053 |
$102,863 |
$19,082 |
$86,945 |
50% |
| $40,000 |
$165,916
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$63,053 |
$102,863 |
$19,082 |
$81,945 |
41% |
| $45,000 |
$165,916
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$63,053 |
$102,863 |
$19,082 |
$76,945 |
34% |
| $50,000 |
$165,916 |
$63,053 |
$102,863 |
$19,082 |
$71,945 |
29% |
| $55,000 |
$165,916 |
$63,053 |
$102,863 |
$19,082 |
$66,945 |
24% |
How did we calculate the 5 year gain and annual average return in this chart?
Estimated 5 year value: Ebay’s neighborhood profile states that the 30260 zip code in which the property is located appreciates on average at 8.6%. In order to be conservative, we have used a 5% appreciation rate which results in a $165,916 value in five years.
Approximate balance on 1st mortgage: The first mortgage was recorded on June 15, 2000. The approximate balance is based on a standard amortization schedule for a 30 year mortgage as of 11/2012 (approximately 5 years from the start of this listing).
Equity: Equity is the value in five years less the approximate mortgage balance in 5 years.
Cash received from monthly income: Calculated as the property’s monthly net income of $318.04 after taxes, insurance and maintenance x 12 months x 5 years.
Total gain after 5 years: Calculated as equity gained, plus cash received from rent less bid paid.
Average annual return: Calculated as Total gain after five years divided by 5 years divided by the winning bid amount.
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| Frequently asked questions: |
FAQ Index:
Who is the seller?
What is the seller’s Ebay rating?
Why are you selling this property instead of keeping it yourself?
What is the property’s history?
How could I get cash out of the property?
What will happen if I win the auction?
What are the payment terms of this auction?
Are there any additional closing costs?
How do I pay for this?
How will the tenant know to pay me?
How will I pay the assumed mortgage?
How can I have no personal liability?
What if I don’t pay the assumed mortgage?
What is the possibility of the tenant defaulting?
What would happen if the tenant defaults?
I am out of state, will you manage the property for me?
Who is the seller?
The property is owned by Home Mortgage Solutions, Inc. and its sister company Relocation Services of Georgia, Inc. We are a mortgage brokerage that specializes in property flips and maintain a license as a property management company.
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What is the seller’s Ebay rating?
We have been a member of the Ebay community for over 7 years (since 4/2000), have been the seller in over 100 transactions (many of which were over $50,000) and have a 100% positive rating with no negative feedback.
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Why are you selling this property instead of keeping it yourself?
We purchased this property with the expectation that it would be vacated, renovated and flipped. However, we are now quite certain that the tenant is capable and willing to lease on a long term basis. As such, this is a truly outstanding opportunity for the “buy and hold” investor to own a hands-off, maintenance-free rental property with an outstanding tenant. Our preference is to recover the funds that we have invested in order to acquire properties that can be flipped.
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What is the property’s history?
The tenants were the previous owner and experienced non-recurring financial hardship (medical). After paying on time for 7 years, they became behind in their payments. We purchased the house and leased it back to them.
Although they would like the opportunity to purchase the house (which creates a tremendous upside opportunity and exit strategy for the winning bidder), they have been there for seven years and are likely to continuing leasing for seven more. As such, with their financial situation again under control, they are again paying like clockwork and are looking forward to remaining in their family’s home for many years to come, making this an ideal buy and hold rental property.
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How could I get cash out of the property?
After you own the property, you could refinance using a 90% LTV first mortgage. The property appraises for $130,000 and therefore it would be possible to obtain a $117,000 1st mortgage. After paying off the $69,000 current first mortgage, your gross cash out would be approximately $48,000.
What will happen if I win the auction?
At the end of the auction, we will need four things:
- Payment by paypal, certified funds, or check in the amount of your bid.
- Your name or company name as it should be listed on the deed.
- The mailing address at which you wish to have the recorded deed Federal Expressed.
- The mailing address at which you wish to receive future rent payments from the tenant.
Within 48 hours of receipt the above we will record the deed and Fedex a tabbed and organized binder containing the following:
- Your stamped, notarized, recorded deed (transferring ownership to you),
- All postdated rental checks (starting with the first month after the auction closes)
- A copy of our letter to the tenant (and proof of delivery) advising them that the property has been sold and that all future correspondence and rent payments should be made to you or your company.
- A copy of the assumed loan details, including payment address, account number, lender phone, and proof of balance.
- Tenant data sheet, including contact information, employment information, social security number, date of birth, photocopy of drivers license and nearest relative contact information.
- Lease and notarized assignment of lease to you or your company.
- Copy of the appraisal.
- Copy of third party title search.
- Cover letter including our contact information in the event that post-sale assistance or information is needed.
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What are the payment terms of this auction?
Payment in full is due within 3 business days.
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Are there any additional closing costs?
No. We are a mortgage company and record our own deeds. The taxes and recording costs will be approximately $142 and will be paid by us. The cost of the Fedex shipping of the notification to the tenant and cost of the Fedex shipping of the deed and rental checks to the winner bidder will be paid by us. Your final bid will be the only amount that you will pay.
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How do I pay for this?
We accept paypal, credit cards via paypal, and certified funds. We will accept a personal or business check, however, we will wait 14 calendar days for the check to clear before recording the deed.
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How will the tenant know to pay me?
The tenant has provided 12 postdated checks for payment of the rent at the time of the lease renewal. We will sign over all checks that are dated for the month following the conclusion of the auction to the winning bidder. Additionally, we will Fedex a letter to the tenant (with a copy to the winning bidder), advising the tenant that the property has been sold and advising the tenant of your address for future rental payments and correspondence.
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How will I pay the assumed mortgage?
We will include the loan details, payment address, etc. in the Fedex along with your deed. You can mail a check each month for payment, the lender accepts pay by phone, or you can set up an automatic payment (ACH) with the lender.
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How can I have no personal liability?
The mortgage was recorded in 4/2000 when the tenant originally bought the property. The tenant subsequently provided our company with an assignable assumption of the mortgage. Although the deed will transfer to your name, the mortgage (Clayton County, Book 4427, Page 128, FHA case # 101-9337951) remains the liability of the original borrower. This creates an ideal investment in which you as the property owner reap the benefit of the rental income and property appreciation without the need to qualify for or incur personal liability as a result of the financing.
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What if I don’t pay the assumed mortgage?
As with any financed property, failure to pay the mortgage will result in foreclosure and loss of your property. Please note that this is an on-time tenant with a long-term residency that creates an outstanding long term gain for the winning bidder. As such, we highly recommend handling the assumed mortgage responsibly.
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What is the possibility of the tenant defaulting?
The tenant has lived in this property for over 7 years and has been at the same job for over 20 years. The tenant’s length of residency; the fact that (with the exception of three months) she has paid on time for the last 7 years; and the fact that she pays by postdated checks a year in advance would indicate that the probability of nonpayment is very low.
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What would happen if the tenant defaults?
You would have the option to lease the property in order to continue receiving a monthly income or to list the property for sale in order to cash out your equity. Local real estate companies are available to assist in either avenue. Either would be a profitable option with no personal liability.
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I am out of state, will you manage the property for me?
We specialize in flips and do not manage “buy and hold” real estate. As an alternative, we will be happy to give you the names of several local property management companies. However, the tenant pays for all maintenance; will be there for many years to come; and pays each year with twelve post-dated checks for the next year. In brief, all that you will need to do is deposit a rent check and pay a mortgage payment. It is highly unlikely that you will need a property management company for this property, regardless of your location.
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