Multifamily considering owner financing

[Jeff Ostreim]

I have owned a 9 unit all studio apartment complex in Mt. Vernon, WA for about 2 1/2 years. I have done rent increases the last two years of 5%, haven't lost anyone and cash flow has been great, but with the demand growing so quickly in Skagit County for multifamily I have been tempted to sell. After listening to Dave Horns note investing podcast the other day it had me thinking of carrying the note for the building. Any feedback or suggestions on how to offer something like this would be appreciated

[Jeff Kehl]

@Jeff Ostreim to answer your question, it's very easy to do. Just put in the listing that you will take owner financing. It's a very tax efficient way to get your profits out over time. Any decent real estate attorney will be able to do the paperwork for you. Basically at the closing table you would sign over the deed and the purchaser would sign over a note/mortgage/security deed to you with the details of the owner financing. You can negotiate term, amortization, down-payment and interest rate. 

You should check the purchaser out like any other lender, run their credit, look at their tax returns etc.

Hopefully that answers your question.

But now let me express my opinion as someone who hates selling real estate. Why sell? Just keep renting and cash-flowing it. If demand is high, prices will continue to appreciate. If occupancy and rent growth is good you've got a great investment. What else are you going to invest in that will be better?

If you're tired of managing it, find a property manager. If you want cash to invest in a larger property just refinance it.

I occasionally will sell a property especially because I bought it specifically to flip. But each and every one I sell causes me pain and regret :)