Tommy DobczykOpportunity Zone Advisor, OZ Wizard · Director of Development | Certified Opportunity Zone Advisor

Fix Up Property, Slash Seller Note & Boost Cap Rate! #shorts

24 Jul 2026 · 1 min

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0:39

Tommy Dobczyk walks through a fix-up deal where $100,000 in rehab work lets you negotiate the seller note down from $500,000 to $400,000. The property's asking price of $650,000 is way above market, comparable sales show around $450,000, and the cap rate could jump from 9% to 12% after the fix.

Right. So like we go out there and we fix, put $100,000 into it because it's all jacked up. That seller note goes from 500 to 400. Um, we're getting those bad service numbers. So based on, if they're making $54,000 before, then $35,000 is awesome. Right. So I like what the example is down there, performance-based down payment. So this, right.
And then I told it the purchase price of that.
So the cap rate's around 9. So a more achievable cap rate is closer to 12. Again, when we ran the comps out there, they're going for $450. So at $650, he's overpriced, right? He may not know it because he's a fire chief and all that, so