All Forum Posts by: Nate T.

Hi Mark,

I am getting back a house this week in a similar situation.  The tenant apparently has had a meth use problem, but no manufacturing or anything (I hope).  What did you end up having to do?  How did you get it tested to begin with?

Thanks!

We have a duplex in Casa Grande, Arizona, available with seller financing for the full 30 years. (Casa Grande is just outside Phoenix, about 30 miles to the south.)

See Photos HERE.

Financing details:

• Purchase Price: $64,900
• Minimum Down Payment: $13,500
• Seller Financed Loan Amount: $51,400
• Monthly Principal/Interest (PI) Payment: $275 (first 3 years) $385 (thereafter)
• Interest Rate: 4.971% for the first 3 years, 8.218% thereafter
• Amortization: 30 years
• Loan Term: Full 30 years (No Balloon!)

Income/Expense details:

• Income: (Rent of $349/mo + $20 utils) x 2 units x 12 months = $8,856 Potential gross income
• Annual expenses (not including mortgage): $3,125.80
• NOI: $5,730.20
• Cap Rate: 8.83%
• Annual debt service (at 4.971% interest): $3,300
• Annual profit potential: $2,430.20

Property details:

• Address: 52 N Morrison Ave Casa Grande AZ 85122 (DO NOT DISTURB TENANTS)
• 2 units
• Both units are 1-bed 1-bath
• Both units have tenants on 12 month leases, with approximately 8 months remaining.
• Rent Amount: $349 (Each unit)
• Security Deposit Amount: $300 (Each unit)
• Tenants pay all utilities except Sewer/Trash. Sewer/Trash bill of $102.90 per month is partially billed back to tenants at $20 per unit, so net cost to Owner is $62.90 per month.
• No HOA
• There is not currently a third party property manager in place. We will include 3 months of FREE property management, so you can have plenty of time to figure out the best management option.

Disclosure: I am a Realtor. Geneva Real Estate & Investments. Owner/Agent

For info feel free to email through BP or call 480-664-2193.

I have a limited amount of private money available, for properties in the Phoenix metro area. The money is available for short term or long term loans (up to 10 years).

Here are the details on the terms:

• No loan fees
• No Balloon
• No pre-payment penalties (90 day minimum)
• 11.5% interest
• Non owner occupants only
• Secured by 1st lien on real property. Residential only. Phoenix metro area.
• 10 Year Amortization
• Purchase or refinance OK.
• 60% max LTV
• Borrower pays escrow fees and lender's title policy

Hi Marc,

I'm not sure if you saw my initial response since I forgot to include your name, but no, there is no PM in place currently.  However, I would be willing to include 3 months of free management so you could have plenty of time to get the management figured out.  How does that sound?

Hi Michael, Yes, you can see the photos here.

Always be honest. If you aren't and the loan went south the lender could dig into what happened and you could go to jail for loan fraud.

Good question. There is not a property manager in place. The expense number that I posted does not include management.

That's actually why I'm selling, because I live about an hour away from there and self manage. I don't have to drive there hardly ever, but I have enough going on locally that I don't want to deal with the drive.

I have a duplex in Casa Grande, Arizona, available with seller financing for the full 30 years. (Casa Grande is just outside Phoenix, about 30 miles to the south.)

See Photos HERE.

Property details:

• Address: 52 N Morrison Ave Casa Grande AZ 85122 (DO NOT DISTURB TENANTS)
• 2 units
• Both units are 1-bed 1-bath
• Both units have tenants on 12 month leases, with approximately 9 months remaining.
• Rent Amount: $349 (Each unit)
• Security Deposit Amount: $300 (Each unit)
• Tenants pay all utilities except Sewer/Trash. Sewer/Trash bill of $102.90 per month is partially billed back to tenants at $20 per unit, so net cost to Owner is $62.90 per month.
• No HOA

Financing details:

• Purchase Price: $69,900
• Minimum Down Payment: $14,500
• Seller Financed Loan Amount: $60,400
• Interest Rate: 5% for the first 3 years, 7.8% thereafter
• Amortization: 30 years
• Loan Term: Full 30 years (No Balloon!)
• Monthly Principal/Interest (PI) Payment: $297.40 (first 3 years) $398.81 (remainder)

Income/Expense details:

• Income: (Rent of $349/mo + $20 utils) x 2 units x 12 months = $8,856 Potential gross income 
• Annual expenses (not including mortgage): $3,125.80
• NOI: $5,730.20
• Cap Rate: 8.20%
• Annual debt service (at 5% interest): $3,568.80
• Annual profit potential: $2,161.40

Disclosure:  I am a Realtor.  Geneva Real Estate & Investments. Owner/Agent

The 4/10 loan limit is not "by law". It is each lender's decision, but most lenders are selling their loans to Fannie Mae and Freddie Mac, so they have to meet Fannie/Freddie guidelines, which limit the number of residential loans a person can have.

So what you're looking for are:

1 - Commercial loans on residential property. "Commercial" in this case doesn't refer to commercial property, it refers to the fact that they are lending to a business rather than an individual, or that it is simply the commercial lending division of the bank. So your LLC would typically be the buyer and borrower, but the property can be residential. You just need to get out there and talk to some local lenders and see who offers these types of loans on residential property.

2 - Portfolio loans. These are the same types of loans that you have been getting, but if the lender is going to keep the loan in their portfolio rather than selling to the secondary market, then they don't have to meet Fannie/Freddie guidelines, so they can give you as many loans as they feel comfortable with. This will be from a local bank, not Bank of America or Chase.