We have been pleasantly surprised by the response to our Jackson Rehab Properties. The properties come with built-in equity, and yet still cash flow. Some of our investors, however, have expressed an interest in eliminating some of the incertainties by acquiring properties where the work is already done, so the cost of rehabbing is known. Additionally, because it has already been through a rehab loan process, a definite value can be ascertained, because the appraisal has already been done.
What makes this unique, though is that we are sturcturing the acqusition financing in such a way that the buyer will, in the end, have put nothing into the property, but will recieve 20% equity and positive cash flow. Getting the property rented normally takes two weeks or less.
The deal is structured like this:
Initial outlay: 5% of purchase price plus $1000 commitment fee (purchase price is typically 75% or less of After Rehabbed Value)
Seller Carries 95% at 15% interest for 45 days (Buyer must be pre-approved for refi loan).
Agency loan refi at 80% of new value full doc (75% stated), which gets them their initial down payment and deposit back, plus typically, $2,000 to $3500 tax free cash, which we recommend goes into a contingency fund for maintenance, etc.
Rent covers PITI plus Property management cost, with 20% equity remaining.
Here's an example (click to enlarge):
Go ahead. Click it... 
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