Structure This Deal on Two Properties

[Ben Sears]

I have the opportunity to purchase two properties from the same owner for buy and hold. Assuming that I can BRRRR both I need some advice on structuring the deal with the seller.

Property 1

SFR 960 sq ft 3/1

Purchase Price: $20k

Rehab Costs: $40k

ARV: $75-80k

Property 2

SFR 1000 sq ft 3/1

Purchase Price: $10k (assuming I purchase the package deal. $20k by itself)

Rehab Costs: $60k

ARV: $80-85k

My funding options are the following:

-I have two private lenders who will end the total amount on either/both properties at 10%

-The seller will finance one or both to me on a land contract for monthly payments and a balloon on refinance. This presents an issue as I'm not sure that I can place my lender in a first position lien without title to the property.

-I have $70k in cash available for purchase, rehab, etc. 

-I have a community bank that will do a portfolio loan on both properties together when they are finished. 

I'm considering completing both properties at once or doing one after the other. Any thoughts on structuring this deal would be appreciated!