All Forum Posts by: Alecia S.

@Daniel Pessin

Venmo very easy to use

Thank you. I just meant out of pocket if I use the other 300 I collect in rent to go towards balloon payment then tenant is paying down my balloon payment for two years with no money out of my pocket. That is how I am getting roughly 10000 balloon payment.

@Jonathan Lane

Also property is worth about 50000. I will have invested roughly 22000 out of pocket and in two years I will gain a property worth 50000 if I want to sell that is free and clear with no mortgage.

@Jonathan Lane

The property rents for 650 to 700 a month. It will not take me that long to recover 10000. I will pay home owners and taxes to current owner about 1000 a year. No other escrow company is involved. If you do owner financing it is because you are looking for ways to not have to go through the traditional financing of getting a mortgage. The property is owned free and clear and has no mortgage by the owner. I have 4 rentals with mortgages and do not want to go the traditional route with the property value being so low. I also do not want to pay all cash right now because I want to be conservative with my cash. I have the cash and could buy it with out owner financing but choose not to. It will cash flow in the long run which is my goal. In two years I can probably do a cash out refinance on one of my two rental properties I own without a mortgage and pay the 10000 left off and purchase another property free and clear or I can use my cash reserves and pay it off. If I save all of my excess rent for the two years before balloon payment is due I will only owe about 10000 to the seller. 4 percent interest is less than all of my 30 year traditional investment mortgage rates. Most are around 5 percent. Again the goal here is long term cash flow and to conserve on amount of cash due at closing.

Thank you so much. I appreciate it. 

I have a property I am thinking about owner financing to buy. I am not sure how it works. I offered 10000 down payment with 300 a month payment and a balloon payment at the end of two years with4 percent interest rate. The property he is selling for 32900. Can someone help me with how much interest I would be paying. Is it 4 percent of total purchase price? Confused. Thank you.

I have 6 rentals in Mississippi and Louisiana and all have paid April rent. We are fortunate.

Deciding factors: market in Gulfport is still affordable and suppose to appreciate in next couple of years. Also getting more cash flow from this duplex and a cheaper price than in Hammond Mandeville area. Rents are definitely lower in Gulfport but you can maximize cash flow with cheaper prices.

I have 5 SF in Hammond and Covington area. All 3 bedroom 2 baths with fenced yards and garages. I have not had any difficulty renting them out and they have appreciated nicely. However, I just bought a duplex in Gulfport due to a great price compared to my area where I am looking to maximize my monthly cash flow. I have read David Green’s book on long distance investments. We currently have a realtor to do the grunt work of finding and screening tenant applications and then we self manage. Not sure this strategy will work as well with duplex in Gulport, but just closed today so I will keep you posted on it. One unit is already rented out in Gulfport and other we are going to do some minor renovations before renting out.

I would look at markets surrounding your area. I have started investing out of state to find better deals. I have 5 houses in Louisiana and just bought a duplex in Mississippi for the same reason. There are deals out there, but you may have to look in other markets.