All Forum Posts by: Oliver Trojahn

There is no work needed on the property. It is very difficult for me to gauge the value of this property. It is in a neighborhood of single family homes that recent sale have shown range from 56k to 80k, those SFR have about 500 less square footage and are much older homes. This duplex was built in 1994, relatively new for this block. I don't think I can compare a duplex to SFR and come to a conclusion.

I think it is safe to say this property isn't a great discount but definitely 10-20 percent below market value. That would leave me to another question, lets say you buy at market value but the property has great cash flow, would it still be a good investment?

Thank you for the quick response Mike.

This would be my first attempt at a deal, here are the numbers on this duplex: Top to bottom duplex with both units having 3 bedrooms 1 bathroom. Not that great of an area, one unit occupied and other is accepting applications from section 8 tenants.

Seller asking 65K, $7,500 down, 8% owner finance for 18 months. Gross rents are 1275 a month, (I have seen the current lease to confirm). I would refinance between a 12-18 months to a conventional.

I have already offered him 55K, 5k down, at 8%. Seller responds I am not negotiable if I will be acting as the lender. I would be willing to spend up to $63,750 with 5K down (following the 50 percent rule). Question: My biggest thing is I only have 5K to put down right now, not $7,500. So, I think my next offer would be 60K, 5k down and see what he says. I think I will need to offer him more than the 8% on his note for the lower down-payment though.

What do you guys think I should offer him to get this property with 5K down and definitely not a dime over 63,750?

Also, what things should I look out for when purchasing a property via owner finance, like I said, I am a newbie and want to jump on this deal very bad.

Please let me know your thoughts?

Your question is open ended. A person can be LEED certified by reading a book and taking a test. If you pass that test you are considered LEED AP(you are certified to work on a LEED project.) If you are LEED AP working on a project that project gets points towards LEED because you are a LEED professional.

As for a building, there are so many things you can do for LEED points you would have to look it up. GOOGLE it you will find everything.

That was very helpful.

Thank you,

Oliver

Let me get this straight. If I make less than 100k at my day job I can use interest deductions, depreciation, and expenses to offset ordinary income after it offsets my rental income?

That sounds amazing. Should I write you a check now or when I get the tools to be a millionaire?

Use Zillow, Eppraisal, and Cyberhomes than take the average. That is a basic start.

Then, get up and research the area.

Welcome,

I wish you best of luck for the future

Welcome to Bigger Pockets,

Good luck with all of your future investments.