All Forum Posts by: Brad Klock

@Marcia Maynard Thank you!  The seller is my grandfather's friend that has owned 4 duplex's for a long time and is ready to sell them.  I definitely got lucky with this one with the no interest but he is a friend so that definitely helped me.  I did have the contract examined by my attorney along with the title search performed and he called yesterday and said everything looked good and to go ahead with the deal.  

So FINALLY after a year of trying to get my first deal, tonight I will be signing off on the paperwork!  I am so excited for this as it has been a long time coming! The deal looks like this...  Duplex with 1 side rented for $350/mth and the other side I will be renting for $375/mth and attempt to possibly raise the other sides rent to $375 also after I speak with the tenant tonight.  The total purchase price is $29,000, I put $5,000 cash down and will be paying $333/mth for the next 6 years.  The owner is doing all the financing and charging ZERO interest!  The half that is vacant at this time does need some work (windows and paint) which I will be getting right on that as soon as I get home from the beach.  Thank you to everyone on this site for the great information, mentor-ship, and feedback along this journey!  Let the games begin!!!  

@Daniella Ortiz  it is my grandfathers friend that owns the property and I just found out that he was thinking about selling it and I went and talked to him. He has 4 duplex's in the same neighborhood. So the plan is buy all of them over the next few years from him with the same deal hopefully. Time will tell on that one. I am just pumped to get this first one completed. 

Thanks @Curt Davis !  The property is not in a bad area though.  I personally lived in the area for about 20 years and my grandparents live directly across the street from it.  It's just your average blue collar working class people.  There are rarely any problems there.  Mostly older people and younger people with families.  The problem with the area is that after the mines and steel mill shut down it took most of the jobs away, so there are not a lot of job opportunities left in the area.  I only live 3 miles from the property so I will be doing the managing which I think will give me a better understanding of the business.  Thanks again for your reply!

So I posted before about a duplex I was working on getting.  I went and walked through it and everything appears just fine.  It needs paint and new windows but I knew this going in.  I talked to the seller today and I have to put $5,000 down and then I will pay the rest of the money over 6 years at $334/mth plus taxes and insurance.  The total purchase price will be right around 29,000.  I have 7,000 saved and figure that I should be able to put in the 9 windows and paint for 2 grand.  I wanted to try to get him to take 4K but he wanted 5.  Originally he wanted me to put 9K down and pay 22,000 over the next 5 years, so I feel like I did alright with the deal since I am only putting 5 up and paying 24 over 6 years.  The one side is rented for $350/mth and I plan on renting the other side for $350-$375/mth as soon as I get it completed.  He talked with his attorney to draw up the paperwork and then I am going to have my attorney look over it.  Any advice, comments, concerns would be greatly appreciated!  Thank you guys for your help, I am very excited!

thanks @Ellis San Jose   I was really bummed out when the last deal fell through. But as the saying goes "when one door closes another one opens" so hopefully this will actually go through and I can finally get started. I really like your idea of asking for a lower payment or a deferment on payments until I can build up a cushion. Plus the vacant side will need 9 windows in total and some paint and cleaning so I would rather do this prior to putting someone in it so I don't have anyone in the way while I am working on it. I will run this by him and hopefully he will accept it and we can move forward. I'll keep you posted as I hear more. Thanks again!

I will pay him $350/mth so I know my monthly cash flow will be tight until

I get the other side rented . He pays the water and sewage which is about $50/mth. The vacant side does need some work and paint but could be rented tomorrow. It will need new windows and probably in 5 years it will need a new roof. I believe it is a good deal because he is not charging interest. It's a straight 29K deal and will save me a lot of interest that I would be paying if I got a conventional mortgage. Plus I will own it in 5 years free and clear. I plan on charging $400/side (or at least the vacant side) and I will pay the sewer and water because it stays with the home in PA. Thanks for any advice!

awhile back I was looking to buy a duplex and that deal fell through due to the seller no longer wanting to sell the property. Yesterday I spoke with my grandfathers friend who wants to sell me his duplex. He wants to do a lease to own and wants 7,000 upfront then I will pay him each month for the next 5 years $22K for a total purchase price of 29K. One side is vacant and needs some work done and the other side is currently rented for $350/mth. I feel this is a good deal, however I have never done the owner financing before and just wanted to know what I should look for to protect myself. He is speaking with his attorney to have the paperwork drawn up but I am obviously going to have my attorney look over it. Any help would be appreciated. Thank you!

it is two separate tanks and furnaces. I understand what you are saying but we are talking about almost a grand worth of oil to full it up. This is my first rental property and I really don't have that kind if money laying around nor do I want to pay for all that oil just for someone to stiff me the final fill up bill when they leave

I am currently in the process of purchasing a duplex. My issue is I live in Pennsylvania and it's already getting cold here. The one half is already rented out so I am not worried about that side. My problem is the duplex has oil heat and I need a solution with the other side. I am going to get a new tenant in there (obviously) and I am going to charge a security deposit and first months rent. I would hate to slap someone in the face with a large oil bill also. So my question is how do I go about all this? Should I tell them that I will start them off with "X" amount of heating oil (I don't want the tank to go dry) and then they pick up the rest of the bill or should I cut them some slack on rent until they get caught up. I am lost about this, any guidance would be greatly appreciated!