Updated almost 9 years ago on . Most recent reply
wilkes barre owner financing
Hello everyone! I just wanted to discuss a seller finance 3 unit im getting ready to sign a contract for.
Ok so its 5 sisters who lost their mom 2 years ago and they finally decided to do something with the property.
They we're asking $85k i offered $60k they countered at $80 and we settled at $70k
Its 3houses on 1 lot. All 3beds and 1bath. 2 of them are currently rented and bringing in $1310 monthly. The one house the mom lived in can use a little upgrade to the kitchen and bathroom and paint everywhere. Which will bring in a total of $700 when all done. One tenant's lease will expire next month, but she is willing to stay on a month to month agreement and will give a 2months notice before she moves.
The taxes are $3900 ins. Is about $1550 and another $160yearly for the furnaces and hot water heater warranty.
They are willing to hold a note if i put 25% down 4% interest 30year amortization and 3year balloon.
I feel pretty good about the deal but i want to get other opinions before signing on the dotted lines. Any advice?
Most Popular Reply
also be aware of the annual fee if you're in the flood zone. Also you'll need to do an inspection even if it's a private sale. You can't take the tenants to court without the inspections be up to date. Nothing would suck worse than finding out the tenants are actually behind on the rent, when you go to file at the magistrate you can't file till you can get it inspected. And if you fail the inspections.... more free loading!