Bouncing Back after Tough Separation

Peter recently went through a separation and is now officially single, no kids. For Peter, homeownership is a priority because he does not want to get priced out of the market in St. Catharines. He saved up $35,000 for a down payment is eager to make a fresh start. He went to the bank and qualified for a mortgage but needed 20% down which he does not have at this time. Unfortunately his wife created a situation for him where a few things in his name were not paid and went to collections. He has started clearing his collections and needs a four-year deal to build his down payment up and improve his credit.

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Employment
Peter owns his own cleaning company called Superior Cleaning Services. The company services commercial clients and has been in business since 2017. In his first year, Peter’s annual revenue was $100,000 and in 2020 the business earned $300,000 through COVID. Peter has been taking a salary of $75,000 and will be increasing his income each year to qualify for his own mortgage.

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Credit
Peter has a credit score of 613. His ex-wife was responsible for the bills and decided not to pay some the items that may impact Peter. Some bills went to collections without Peter’s knowledge and have hurt his credit. During his four-year RTO term, Peter will focus on settling his collection items and paying down his car loan. He is working with a Clover Properties-approved mortgage professional to get mortgage-ready in 2025.

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Property
Peter found a great property with strong bones in the St. Catharines area. This well-maintained property has 3-bedrooms, 2 baths and a single car garage. A key feature is an in-law suite in the basement, which can generate some rental income to help Peter qualify for a mortgage. Located in a great area, the property is close to amenities, schools, parks and transit. Plus, it is conveniently just a 5 minute drive to the QEW for quick access to Toronto.

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Next Steps
If you can qualify for a $599,200 mortgage (based on a 20% down payment), and would like to earn about $1284+ in monthly cashflow to help Peter Rent to Own, please call or text Rachel at 416-450-1940.

Investment Property Highlights

  • Your investment is $140,700
  • Estimated annual return on investment is 33% (based on a mortgage rate of 3.00 and 30 yr amortization –approximated)
  • Your estimated NET profit $184,528
  • Your NET monthly cash flow is approx. $1284+ a month
  • Tenant-buyers have $35,000 for the down payment
  • Tenant-buyers have a business income of $300,000+ in 2021

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About the Property

  • Purchase price is $749,000
  • Target closing date is 30 days
  • Tenant-buyer agrees to pay $4,412 monthly
  • Monthly carrying costs $3,200 (or less)
  • Tenant-buyer will buy this house in 2025 for $900,054

Next Steps

  • Yes, I want to proceed with this opportunity
  • Meet realtor and sign conditional offer
  • Confirm your financing
  • Review inspection report
  • Review contracts
  • Go firm on the deal
  • Tenant-buyer’s $35,000 down will be used as the deposit on the property with accepted offer
Rachel and Neil Oliver
Rachel and Neil OliverCo-Founders, Managing Partners
Need a Mortgage Partner for Your Next RTO?
If you’re craving cashflow but have only cash to invest, let’s explore a Joint Venture.
Contact rachel@rethinkrentals.com

Contact me for more information or if you have any questions: rachel@rethinkrentals.com