Family Bouncing Back After a Health-Related Set-Back

Lisa and Nigel are a married couple with 4 children, ages 14,15, 16 and 19. They have been renting in Oshawa for the last five years and are tired of the uncertainty that comes with being a renter. They are motivated to start investing in their own property where they can build equity and stability for their kids. The couple will need to Rent-to-Own for four-years to rebound from a bankruptcy. The couple has saved up $20,000 for a down payment and found a lovely property in Quinte West. The offer has been accepted with financing and inspection conditions so this is a very time-sensitive deal.

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Employment
Combined, the couple earns $102,920 annually. Lisa is employed as a caretaker for York Region School Board since 2007. She is currently on sick leave and is receiving a pension from the government. She fell ill in 2016. After a very exhausting and trying journey to identify the rare cause, she was finally diagnosed in 2020 with a Functional Neurological Disorder. During COVID, Lisa was refused treatment. She just received confirmation that her therapy is slated to start in the fall of 2021. Fortunately, the condition is curable and she is planning to return back to work in the near future. Until Lisa returns to work, she has a guaranteed income of $22,572 annually through her pension. Nigel works for the Region of Durham as a Transit Operator. He has been in this position since 2017 and earns $71,000 annually. The couple also receives $9,348 annually in Child Benefits.

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Credit
Nigel has a score of 612. He has some debt that he will work on paying down but his payment history is good. Lisa’s credit needs work. Her medical journey to get a diagnosis started in 2016. She was receiving medical benefits from her employer, which allowed the family to stay keep up with bills. However, in 2017 the benefits stopped and the family struggled. They started falling into debt while Lisa was off work due to illness. To get out from their mounting debt, she was advised to file for bankruptcy in 2018. In 2019 Lisa was discharged. Since then, Lisa’s health health and finances stabilized the couple is determined to make a fresh start. Over the next four years, the couple will work closely with a Clover Properties-approved mortgage broker to be mortgage-ready by 2025.

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Property
The couple found a great house all brick home in Stirling, Ontario. This 3+1 bedroom, 2-bathroom property has been well-maintained and is located in an established family-friendly community. The house is in great shape and features a finished basement with bedroom and separate bathroom, perfect for their teenagers. The main floor has been updated and the backyard is private. The property has a metal roof, newer windows and a newer furnace from 2015. This property is 25 minutes from Belleville and the 401. This allows Nigel a quick commute to work while their kids live in a great community.

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Next Steps
If you can qualify for a $404,000 mortgage (based on a 20% down payment), and would like to earn about $885+ in monthly cashflow to help Lisa and Nigel Rent to Own, please call or text Rachel at 416-450-1940.

Investment Property Highlights

  • Your investment is $102,000
  • Estimated annual return on investment is 30% (based on a mortgage rate of 3.00 and 30 yr amortization –approximated)
  • Your estimated NET profit $124,286
  • Your NET monthly cash flow is approx. $885+ a month
  • Tenant-buyers have $20,000 for the down payment
  • Tenant-buyers has household income of $102,920

click to downloadspreadsheet

 

About the Property

  • Purchase price is $505,000 (Has already been purchased at $505,000 no offer presentations)
  • Target closing date is 30 days
  • Tenant-buyer agrees to pay $3,076 monthly
  • Monthly carrying costs $2,191 (or less)
  • Tenant-buyer will buy this house in 2025 for $615,845

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 $20,000 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