All Forum Posts by: Richard Appleby

That's brilliant. Thank you for the clarification!   @Brandon Plombon

@Brandon Plombon

You lost me a little there. What do you mean they would get 80% of the value 30 days after closing? My suggestion for a down payment is so they would get some funds when we close, but I can't give them 80% of $148k and I don't understand where that money is coming from in your example. I could go the traditional bank route currently, but if seller financing allows me to get in for less cash, then I have more options for another rental and/or cash repairs if needed. Just gives me more breathing room since this is my first one.

Insurance is an accurate quote from my State Farm insurer. If I got it under contract I would get 1 or 2 more quotes to see if I can get it down more. Thanks again for your time and opinion. 

@Nathan G. Brilliant

@Brandon Plombon Looks like my attachment didn't go the first time, so I just added the screenshot. Current income is $1400/month with unit breakdowns in the screenshot.

I asked if they were interested in seller financing so they responded yes and asked what I was thinking. I don't know if they own it outright or not. I gave them a couple options this morning - one with a 30 year term if they are wanting retirement type payments and one with a 15 year balloon. I don't know if I would be able to pay down enough to do a closer balloon with payoff coming from a refinance, but my calculations are around year 10 I would be in a good spot to refinance if the value of the home held current value. Any thoughts from your perspective?

@Jessica Flint Did you end up doing any deals with this? I would be interested in hearing what your terms were. Thanks!

Hello BP Community!

I have looked at this property (https://www.realtor.com/reales...) and I have asked the sellers if they would consider seller financing and they have asked me for my terms. Any thoughts on options to suggest to them would be appreciated!

A quick background on the property - 1900 home that is REALLY well taken care of. They remodeled in 2004 and there is no evidence of it being such an old home except in the basement - but even there it's the best century home basement I've been in - very clean, organized, dry and no smells.

The main level is rented out to a local radio station (1 room) and tax professional (2 rooms). The upstairs has a separate entrance and is currently rented $125 below market rent. When I ran my numbers, I ran with increasing the rent $50 right away and then over time adjusting it slowly with the tenant to market rent (or market rent to a new tenant if this one left).

It's not a cash flowing property as is when considering variable expenses, but is appealing to me because of the maintenance already done, purchase price, close to home (so I can work on it with my kids to teach them), and with some businesses I can do 2+ year leases for a little more stability.

I would like the seller finance so I can keep more reserves as I'm also looking at a STR cabin purchase. This is not a questions of not having reserves - the bank has approved me for both purchases simultaneously if needed. I just feel more comfortable if I could keep more in the bank.

If I missed any information that you would like to know, please ask! I have attached the seller's financial from the building (as a photo) as well as my BP analysis (as a link) below.

Thanks in advance!

Richard

Thanks @Adam Tafel.

I'm familiar with the challenges of financing that I went through with my primary. Short term this could be an issue - my target price is also at a lower point so if I can't rent it I could re-list this summer and not lose (too) much on the deal. I plan on no appreciation of the home, only the property spot on the lake - thus buying for the nice lake and land. Long term plan is to save the revenue and replace the mobile home with a stick built in 15-20 years that will appreciate and can be passed down to my kids - but was financed by the STR model.

It is not being marketed for STR or AirBNB, but all the ones I am looking at I am viewing as that.

I will DM you for more specifics on your STRs. Thanks!

Thanks for that info @Patricia Taveras! I am running my numbers at 1/2 the rental cost AND occupancy that AirDNA lists for my area and I would still cover my costs and be able to use the place with my family, just in case the manufactured aspect demands a lower rental rate.

Hello BP!

I'm looking at getting a STR in northern MN (Brainard area or just North of there). There are several cabin options that are much cheaper because they are manufactured homes. Some after obviously a manufactured home and some you wouldn't be able to tell if you weren't familiar with them.

Does anyone have experience whether these would rent similar to other traditionally built cabins with similar beds/amenities? They are not in mobile home parks.

The only comparables I found in the forums were people over in the Carolina's, and they said they still worked.

Any thoughts are appreciated.

Thanks!

Richard

Also, My primary home is a manufactured home on a permanent concrete basement, so I'm familiar with them and can see this as being a niche for me.