Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
House Hacking
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 2 years ago on . Most recent reply

User Stats

10
Posts
2
Votes
Florent Breton
2
Votes |
10
Posts

Multifamily Creative Deal in San Francisco

Florent Breton
Posted

Hi BPers 👋

I'm calling creative minds here to bounce ideas around a house hacking opportunity.

The building:  San Francisco based 3 unit building. I'm renting out one unit and the owner does not live on site.

The opportunity: The owner is advanced in his retirement and wants to offload some properties from his portfolio. He wants to give us an exclusive look into the deal. We have a great relationship and would really want us to buy him out!

The numbers: Market value $2M, fully paid out and depreciated since mid 1900s. Gross rental income +/- $10K / month, including our unit.

His goals: He wants to reduce his tax exposure and also wants to donate some of the proceeds to charities via a Charitable Trust. He is also open to owner financing.

Strategy #1 - The Charitable Trust

For the seller: he gets a tax break over the first 5 years and receives an annual income from the trust itself.

For the buyer: well, not sure what's in for us in that context. We'd buy from the trust and would have to secure a conventional loan.

Strategy #2 - Owner financing

For the seller: he does get annual income, a lower tax exposure than via a conventional sale. But there is no charities benefiting from the sale.

For the buyer: we can get better financing terms than what the market offers right now. Possibly, low down payment and a low rate.

What other strategies would come to your mind?

Most Popular Reply

User Stats

2,669
Posts
1,100
Votes
Kerry Noble Jr
  • Investor
  • Indianapolis, IN
1,100
Votes |
2,669
Posts
Kerry Noble Jr
  • Investor
  • Indianapolis, IN
Replied

How much positive cashflow would you see out of that 10K gross? Reason im asking.....take option #2 but offer to make a charitable contribution to a charity in his name monthly out of the cashflow for 2.5 years (instead of the 5). 

  • Kerry Noble Jr
  • Loading replies...