Seeking to Structure this Deal for 1st Rental Property.

[Aaron C Kirkeby]

Hi everyone!!!  Here is the deal.  I hear all of the time that the money is there, you gotta find the deals.  My situation is that I am a Licensed Landscape Contractor in Cali (2017), a recent General Contractor in Oregon (2019), and and just got certified in Backflow testing and repairs.  I'm looking to not work much!!! Meaning, I want to pretty much be just like you, the guests, and like so many people in this community, own property and have systems in place that are dialed in.  I want to work smart and allow my money to work for me.

The Want:

To purchase first rental, a 4-Plex in San Diego this winter. Live in one and rent out the other 3

The Pathway:

FHA Loan

What I need per Lender criteria:

$35K for down payment

$40K for 6 months of payments in savings account

Have $75k money minimum of 60 days in savings account.  

They prefer $80k to $100k savings in case 4-plex property is $1.2 mil 

The situation:

Credit score is in the lower middle 600's.

I do not have much cash saved up. (reinvest into the business mostly).

I have a client who told me he would write me a $35k check to get in on the deal. He is not a family member so an FHA wouldn't work.

He could give me $35k and I can put in savings.  Would still need another $40k.  Client may be open for investing more. I may need a 2nd investor.

What I would like to know about making this deal work:

If I have $100k invested by one or two investors, what would a realistic or healthy deal on returns, equity, etc look like for the investor(s)?  I could use some help in understanding the best strategy or knowing the variations of strategies that I can employ to make this deal successful.  

Would their want be on having me refinance in 6 months to a year to repay $100k plus interest?

How much interest on $100k would be attractive and fair?

How much time is reasonable to repay?  What would some healthy terms look like?

Would it be a possibility to have partial debt re-payed and also remain on the property for equity when selling property or being bought out after appreciation through 5, 10, 20 year period?  What would healthy and fair look like then?

What is Attractive:

I can create this deal on purchasing a $1mil to $1.3 mil 4-Plex in SD with only $100k as opposed to a 30% (+ or -) down payment.

My Goal:

To own my first rental property by the end of this years winter.  Also to share my success with others and be on this show some day.  

About Me:

Got hit by a car in 2002 on the 60 fwy while walking.  I was 24 years old.  The Short story , was incredibly drunk, somebody drugged me unbeknownst to me.  When the drugs over took my psyche, I flipped out.  Wife at the time pulls over on the side of the freeway around 3am , i got out of our truck, she took off.  I get hit by a car going 65mph.  Died, saw the light..  FYI Heaven is real LOL and it took me like 4 years to recover.  I'm a miracle pretty much.  Written 3 books to help people be successful, been sober 13 years, and all I want to do is become financially sound and to help others do the same.  I'm 42 years old, raised 2 daughters on my own since 2012, who have both been out of the house for a year now.  It's time to do me!  

  Thanks everyone and looking forward to reading your responses and mainking the dream a reality!