All Forum Posts by: Armin Rostami

 @Obed Calixte thanks for the comment. Yes I have ran the numbers and in that scenario my monthly payments are going to be closer to around ~5k assuming the current rates and using a 2/1 buydown option, it'll come to around ~4k. 

With the Sub-to I can have around $3,200 monthly payments for the first 5 years, and then assuming the rates stay the same the monthly payments would increase to about ~4k. 

@Nicholas L. thank you for the comment. In the location I am in it is very hard to cash flow or even break even especially with the current rates. And even if I try to house hack, the monthly payments are still going to be higher than what I would be paying to rent a place. The monthly payments are more important to me than the down payment at this time. 

Hi everyone, I came across a subject to deal with that would love to hear some experienced advice and feedback on the deal and if I should move forward with it. This will be my first investment and my goal is to get my foot in the door with a property that has minimal cash flow and is close to me so that I can gain experience as a landlord. Strategy is to ideally buy and hold long term with the possibility of house hacking it for the first few years. 

So the questions I had were:

- based on the info below, does this deal seem attractive and what are some counter offers I should give out to the seller that makes the deal more attractive for me? And how would you structure and negotiate this deal to make it a win-win?

- what are the most important things I should make sure to maintain in a Subject-to deal in terms of legal procedures as well as due diligence to minimize any issues? 

- Is having a 5-year balloon payment risky? and assuming the rates stay the same and I had to refi into a 6% rate after 5 years, would that kill the deal or would it still be worth it?

Deal Info:

- 3bed/3bath 1970s Townhome in the Bay Area (East Bay) - good location with good schools and low crime relative to other parts of east bay. 

- Purchase Price: $700,000 --> Comps are in ranges of ($680k - $750k)

- Downpayment: $160,000

- Agent Fee: $17,500 (I would have to pay as the buyer)

- Other fees: Everything else (including attorneys, inspection, appraisals and etc.)

Financing

- A) Existing Mortgage: $336,000 @ 2.75% rate (subject to) - First position (5yr Baloon)           

- B) Remaining balance: $174,000 - principal only seller finance second position loan (5yr Baloon)

- The most important factors for the seller is to get their equity paid upfront for the $160k down payment and to have the debt off their credit report in 5 years. So they are not willing to extend the balloon payments.

Monthly Breakdown:

- Rent: $3500

- First position Sub-To loan P&I: $1,371

- Second Position Seller Finance P&I: $566

- Taxes and Insurance: ~$870

- HOA: $375

Total Expenses: $3,183

Cash Flow: ~$300

Exit Strategy after 5-years:

- Remaining debt left: ~$470,000

Either refinance or sell


Thank you for all the advice and assistance!!

Hi everyone, apologies if I’m missing any points here but I am a newbie and looking to get in my first investment property. I came across a seller finance deal here in San Diego and just trying to make sense of the deal and hear some thoughts and advice on how the experts go about thinking about this. Would love to hear anyone's thoughts on what counteroffer you may have for the seller if the deal is worth pursuing at all and how you guys run the numbers and analyze the deal. Thank you again!

Here is the info:

La Mesa, CA

- 4bed/3bath, 2204 sqft, built in 1904, B class location, Property needs TLC and some renovations but still rentable with the current condition. Seller lived in the house their whole life.

- Main house: 3bed/2bath home. He says should get 3500+ in rent. - Granny flat: 1bed/1bath. 1900+ in rent 

- Purchase Price $900k

Owner would like a down payment of $225,000.

She can carry the rest at 6% interest only for 5 years.

She'd also like to prepay/ discount the purchase by $90,000 for up to 5 years of rent for the granny flat. That comes to $1500 a month. The 5 years can be less.

Hello everyone, I wanted to come on here and introduce myself as a new member of the BP community and thank you all for all the fantastic resources and information you put out here!

I am getting started on investing in real estate and buying my first property and would love to hear everyone's advice that has been through this journey themselves. 

I am graduating college and moving to the bay area to start my full-time job this summer and will be there for at least 2 years for sure before I start thinking about moving. My goal was to purchase my first househack whether in a Multi family and rent out the unit or single-family and rent by the room. I know how crazy the housing market is in the bay and how high the prices are and it will be almost impossible to cash flow unless I put down a lot of money. But my goal was to find a good deal that I am able to at least break even and live rent-free while building up equity. 

Now my question to all the investors in San Francisco and everywhere else is that with how the market is up there, would it still be wise for me to look for deals in the bay, and am I able to find good deals to house hack and get the first real experience as a landlord? or will it be better to look for out-of-state markets with way more reasonable prices and cash flow opportunities?

Thank you again for all the great info here! I would also love to have a chance to connect and learn from any experienced investors that have done this in the past. So please don't hesitate to message me and I am happy to contribute in any way I can as well!