All Forum Posts by: Brendan R.

We purchase a 2 unit with an apartment upstairs in September. We have two children, one on kindergarten, the other is 4. It was definitely a harder decision to make with kids but we have not regretted it. I have 4 other rental units and am looking to expand. This helped our DTI down and lowers our monthly living expenses. My wife stays at home. Our tenants upstairs are a young family and it's been a good fit so far. I understand your concerns but I feel it is doable. The 4 years of landlord experience I had leading up to house hacking was very beneficial though.

We do have rental management experience and access to commercial financing.  I was just looking to any downside for seller financing.  If the numbers make more sense to go through a bank we will but I was just curious if there was anything we should be aware of approaching seller financing.

I am looking at purchasing a 7-unit property from someone we know.  When my wife first spoke with her about the property she brought up that they would be willing to provide owner financing with 20% down from us.  We are very comfortable with this and the starting price (plan to negotiate from there).  

I was talking to a mentor about the deal and he recommended avoiding the owner financing.  He said if they die and a relative takes over the note they could possibly call it due and we could be stuck in a pinch.  We are working with a commercial lender for other possible deals but I feel like the owner financing will be easier to work with and have more favorable terms - fixed rate for life of loan and no balloon.

Any feedback is welcome, thank you!

What do the numbers look like?  

Thanks for sharing.

You are rolling into a great time of year to sell.  You could have two months to renovate and list in early April.  It sounds like selling will do more to further your cash flow goal.

Should I use someone local or a national company as my QI?

Any recommendations or experiences are welcome.

This tax credit has helped me in years past. I would become more familiar with the 1040 form if I were you. Your Schedule E is only a slice of the pie. I know it's not popular here but if you contribute to a traditional IRA it will lower your AGI, plus the saver's credit, depending on your income, can help you out.

https://www.irs.gov/retirement-plans/plan-particip...

You may or may not qualify for this or the IRA deduction, just wanted to put it out there.

How long have they lived there?  Is there rent at or close to market rate for a similar unit?  Do you want them to stay?

If you want to retain them as tenants I would accommodate them.  Nothing seems too unreasonable.

I purchased a two unit with an FHA loan in August. When my agent was writing the offer he tried to talk me into every other imaginable scenario to avoid submitting the FHA offer. I made every other aspect of the offer as easy as possible for the seller. We waived a buyer's inspection but still had the FHA appraisal to fall back on and mortgage company required a termite inspection. If you are using FHA financing for a multi unit in a competitive market I would recommend making every other aspect of the offer as appealing to the seller as possible.

I was also inside the house a few hours after it went on the market, got an offer in quick and under contract within 48 hours of it going on the MLS.

Did he disclose the felony to you or did you discover it?

If everything else looks good and that is the only thing holding him back then I would just call him on the phone and ask him about it.  Check references, personal and employment - feel him out.  If this is in a class C and no other red flags come up I would be ok to rent to them.