Yorkville, IL · Member since 2017 · 4 posts · 0 votes
HELLO BP! The greatest community on the internet!
I'm reaching out for some guidance and general Q&A for my first deal...
Background; I'm in the FAR West suburbs of Chicago, Illinois
This is an off market deal and I'm the first person to approach the seller who is selling for the following reasons.
seller is a tired land lord
looking to retire and move to AZ
rental houses are only things keeping him here.
I'd like to structure a seller financing deal and would appreciate any guidance in costs associated, who i need to contact to make this happen i.e. cpa, lawyer, title company, ect..
Rental Property Investor · Belleville, IL · Member since 2017 · 875 posts · 529 votes
8y
437K @ 3% your payment would be about $1,825 a month before taxes and insurance. How much do these rent for? What are the taxes? How much is the insurance? What is your vacancy allowance? How much deferred maintenance? You need to answer all of these and more to determine if you will cash flow.
Tampa, FL · Member since 2017 · 240 posts · 153 votes
8y
We're gonna need a lot more detail than this. Do you have anything else, like a ballpark price range, or pictures, or anything? Any detail would be great
Yorkville, IL · Member since 2017 · 4 posts · 0 votes
8y
Unfortunately I don’t have any pictures as I literally made first contact yesterday. Both properties were on the market last year & delisted with no sale recorded which peaked my interest. Dupelex was listed @ 196,000 & triplex wasn’t listed @ ~290,000.
I plan to offer 437,500 all day for both properties, $350,000 w/ 3% down @ 5% interest only 5yr note. Their’s deffered maintinance on the properties, gravel driveways, rents are below market, & I plan to pour 10,000-20,000 in improvements to the property’s within the first calendar year.
Rental Property Investor · Belleville, IL · Member since 2017 · 875 posts · 529 votes
8y
437K @ 3% your payment would be about $1,825 a month before taxes and insurance. How much do these rent for? What are the taxes? How much is the insurance? What is your vacancy allowance? How much deferred maintenance? You need to answer all of these and more to determine if you will cash flow.
Real Estate Broker · Chicago, IL · Member since 2017 · 38 posts · 7 votes
8y
Any updates on this, @Jerry Rojas, as what's been said, there needs to be some more details for us to help and analyze this.
May concern is that there is quite a bit down, and yes it's seller financed but most times sellers would like to defer their capital gains... pushing it 5 years isn't really doing much and having to a tax bill on a 350K profit is pretty hefty.
Plus another $20K in improvements is quite a bit, your ROI is going to take a bit before it starts increasing in percentages.