HELP - FOUND MY POTENTIAL FIRST 4 UNITS ( FIRST DEAL)

[Jean-francois Ndomb]

Hey guys,

I am getting ready to buy a 4 unit multi-family property from a friend who does not want it any more but doesn't want it to go back to the bank ( moving on to a different business). So instead of $85k it was appraised at, I am getting it for $71k that he owes on it. Before this, I was shopping for SFH to buy and hold after meeting the FHA requirement and got a per-approval to shop around for $80k flexible ( could go higher, but I did not want to go too high on my first one). I am yet to contact my mortgage agent to get the specifics on this current change, but I would like to get ahead of the ball on this one before I ask him tomorrow. Will my requirements change for this type of loan? SFH to Multi-family. What are the usual requirements for a multi-family?

From the numbers my friend has given me, 2 units rent for $495/ea and 2 rent for $395/ea. ( Total 4)

Any recommendations on how to go about the conversation tomorrow with the lending mortgage company? if not them, the next one I will be shopping for?

Thank you in advance.

Yours in success,

[Art VanDerWerff]

No get your name on the title.  You can do this without changing the loan.  Some loans have a pay on full if house is sold.  But I have never heard of the bank even saying anything as long as the payment comes in.  But even with his name on the loan, if you stop paying the bank will foreclose on the house.  And make sure to go through a title company not just his word.  Just to make sure it is his house to sell.  Sound like you trust him but better to know fore sure. 

I'm sure with the right Attorney you can make it fair for both of you.  The main thing is he would have to trust you to keep paying on time to not hurt his credit.  But it sound like he really wants out. 

So go be his solution! If the numbers work in the BP rental Property Calculator.  And below market price.

Then go use that loan to get another property. lol

Just don't let it ruin the friendship.

Have a Good One and I wrote this in Braille! lol.  Just Playin

Art