Possible structures on this 4 family and 2 family.

[Joshua Martin]

Hey gang,

  I'm going to meet with a seller today (to be fair, he doesn't know I'm coming), but I have word from different sources he wants to sell his four family and the two family beside it. He also wants 300k for the pair, which, assuming the interiors are not a total crap shoot, is pretty darn fair.

  In any case, just off of the public records I see that one was bought in 92 and the other in 04. I assumed the four family from 92 is either paid off or has a very small lien left on it, but I'm guessing the two family in 04 may still have an existing mortgage. So, I'm brainstorming what I might be able to put together should he actually want to unload both.

On the four, I could finance the purchase with FHA, although there might be certain issues with the exterior. It would be impossible for me to not only originate two mortgages at the same time, but I probably wouldn't qualify for the duplex either. Not a ton of cash as well.

  So, if he's a tired landlord and tired of dealing with tenants, I thought proposing seller financing would be solid given this situation. If he wants to sell the four family outright I suppose I could finance with a small repair escrow or a 203k or something, but I want both.

  I could look for an equity partner for down payment funds on the duplex, sure, but would a master lease option or seller financing be possible if he doesn't own the property outright? That's the main question.

  The price for both is where I'd capture some equity, as he wants 300k, with approximately 200k for the four family and the other 100k for the duplex. The duplex is definitely worth something more, while the four family is close to market at 200k, so I'll be trying to see if he'll move a bit given there's no commissions and needed repairs, etc.

  In any case, thanks in advance. We'll see what happens. A good place to brainstorm a few additional strategies either way.

Best,

  JTM