All Forum Posts by: Aaron Gobert

@Jay Helms, feel free to text, call or email if interested. My contact info is in the original post.

Completely renovated duplex in SW Houston area of Alief. See details below. 

Address: 12619 Ashford Meadow #2 (units A&B)

Asking Price: $144,900

Potential Rents: Several comps in the $950-$1,250/unit range

HOA Fees: $200/month/unit

Unit size: 2 bed / 2 bath ~925 sq ft/unit

Flood Insurance needed if going with a lender but did NOT flood during Harvey.

Description: Each unit is 2 bed / 2 bath and are completely remodeled. All new appliances in both units, new HVAC in unit B, new roof, new flooring in both units, new cabinets and counter tops in Unit B. The bottom unit did not flood from Harvey. There was a roof leak which caused some rain damage during Harvey. The damage was remediated and repaired and the HOA put a new roof on.

Both units are vacant so the new buyer can put in his or her own tenants. There are rental comps going for $950-$1,250 for this level of rehabbed unit. The property is in a flood plane so you will need flood insurance unless you pay cash, but it did not flood during Harvey. I have a survey and elevation certificate.

Click here for pictures.

Call Aaron 713-824-0651 or email at aaron.gobert@yahoo.com if interested or for a showing.

Hello BP! I am working on structuring my first deal here in the Houston market and could use some advice on the way I'm trying to structure the deal. It's a pretty interesting scenario especially for my first deal. 

Background

- The SFR is owned by an individual who wants to move out of state in approximately 15 months when she retires (original owner of the home).

- She is tired of being a homeowner and just wants to lease something for the 15 months, that way when she is ready to move she doesn't have to go through the selling process. 

- I offered to buy the house and lease it back to her so she doesn't have to move twice. 

- The owner mentioned that she is worried about the tax implications of selling the house

- She has a couple of years left on the mortgage but I'm not sure what amount at the time of this writing.  

- After the 15 months, I will fix it up and rent it out to new tenants. 

Deal Structure

I was originally going to use a private lenders self-directed IRA to pay for the deal but after the owner mentioned she is worried about tax implications, I'm leaning towards discussing the option of owner financing.

My thought is that I will get a loan for the remainder of the mortgage + $5,000 for the seller. I will than use seller financing for the remaining $85,000 at ~6% interest rate. I'm thinking I'll finance it for 5 years amortized over 30 years or possibly interest only payments (thoughts?). Also I would do no due on sale clause, no penalty for early payoff and no balloon payment. 

The Numbers

Offer Price - $100,000

Current Market Value - $125,000

Future Repairs - $11,000

ARV - $151,000

Rents - $1450/mo

Mortgage Amount - ? (For this example we will say $10,000)

Loan 1 - Mortgage + $5,000 = $15,000

Loan 2 (Seller Finance) - $85,000 @ 6% int rate, 5 yrs amortized

This is my first RE deal and based on things I've read, this seems to be the most logical way to structure the deal. It's interesting because she would be selling me the house with seller financing and then I would lease it back to her for a period of time. For the pro's of seller financing, I would really love your input...

Questions

- Is this a good structure for this deal?

- What do you think of interest only payments to the seller vs P+I?

Thank you!

Aaron

I'm pretty new myself, but most everything I've read has mentioned List Source as a way they narrow down possible buyers. Here's an article where they talk about a case where they used List Source and what criteria they used.  

The house looks great! Congratulations