All Forum Posts by: Carolina Mejia

I have a 1.35 acre lot with an old 3/2 trailer on it in a rapidly growing part of south GA with a motivated seller. Needs to close in December. Selling for 60K & I need 40K more for the deal. I can put in my cash but that would leave me with nothing. I am overwhelmed- i know its a good deal but I am scared and want a loan- i don't want to use my cash and if i do use my cash i want to be able to do a cash out refinance. Also I tried to reach out to lawyers and I haven't heard back to help me take the next step on the process. Anybody have advice? Want to help walk me through it? Has the money to loan out? Or wants the deal themselves? let me know- they need to close in about 30 days ( the seller has a balloon payment due in December to original lender)

Hi, i have a piece of property that is 1.35 acres in GA that a friend of a friend is looking to sell. Its nothing special it has an old 87' 3/2 trailer and a cement block 3/1 house both houses share utilities. The seller has a seller finance agreement with prior owner. His balloon payment is approaching in 12/2023. In researching the property i found the ArcGIS website and saw that the back cement house is actually half on the property line with the wooded lot owned by someone else behind the property. I called seller he said not that he had a map somewhere showing that behind that house there was still 25feet of property. I asked him if he was ok if i ordered a land survey don't to see where the property lines are. Are land surveyors the only people who can do this? My question is, if the house is indeed encroached- what happens then? Can i call the owner of the lot behind and try to buy that piece of land? if they say no will i have to take it down? Or will something only happen if the back owner complains? for reference back lot is an undeveloped 69 acre wooded lot. What are the legal implications? The house has been there at least ten years. this is a good deal with great potential cash flow and just an looking at all the ways it could go wrong and right. Please advise. See picture of arcgis website below

Hi, i have a piece of property that is 1.35 acres in GA that a friend of a friend is looking to sell. Its nothing special it has an old 87' 3/2 trailer and a cement block 3/1 house both houses share utilities. The seller has a seller finance agreement with prior owner. His balloon payment is approaching in 12/2023 of $49000. It looks like he will not have the money and is looking to get out of this agreement. He wants 10 to 15k for him. Total $64000 to buy property. This was my thought, I told seller to get with the prior owner and offer him $30k cash (what i have in cash). If he takes it then we buy the property from seller like this. We get a lawyer to handle closing, we give seller 30k to pay off that loan and take old lien off property and then the seller puts a new lien on the property; he 'seller finances' the remaining 15k to me. So now the house is in our name, seller has lien- seller stays living there (he needs the 10-15k to move). Then we get with a bank to refinance or do a mortgage on the property with what it will appraise for. What i don't know is what the loan product is called? I've heard on the podcast there being 45 days to get a mortgage on a property after buying it. Once we get approved for the loan, we can pull out the funds- pay off sellers 10-15k- and depending on how much is approved get some-all-or more of our money back. I know most banks will do 80%, that should be fine. I believe the property will appraise for at least 100k. Help me poke holes; what am I missing? What due diligence steps should i take? I know the bank will do its own appraisal, however should i do an appraisal before i but the property to make sure this plan will work? The cheapest 1acre lot in the town is 39k, there is also a 2 acre lot for 39k. The cheapest property with house/trailer on it is 94k.

I just want to add- your post says stainless steel appliances- but the appliances are black.

 The lender is aware of the circumstance!

I am under contract on a house that I intend to use as a 2nd home. I plan on renting 3 of the 4 rooms and having one for me so that it pays itself. I am buying it at $165k, 10% down, 7.5% interest rate (yes i know, terrible, i don't have good credit) Anyways the house is OCCUPIED until 04/2024. I will be negative $200-$300 every month until they leave. I can afford it, no issue there. What is the worst that can happen with tenant occupied homes? How do i nicely say i will not renew the lease? My scenarios in my head are that they tear up the house because they are mad and/or they stop paying the rent because they are mad. So i'd be stuck rehabbing or fixing whatever they break or going through eviction. (them leaving on there own would actually be great) I have already requested the estoppel certificate. What other due diligence should i do? i am in GA for reference. Port Wentworth area (outer Savannah)

 I think the same! thank you!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $145,000
Cash invested: $20,000

Bought as FHA for owner occupied- rented out later for $1675, now $1775. Mortgage is $897!

What made you interested in investing in this type of deal?

owner occupied

How did you find this deal and how did you negotiate it?

MLS, normal retail

How did you finance this deal?

FHA

How did you add value to the deal?

None

What was the outcome?

Great cash flow! Stable property!

I am under contract on a house hack! I am using a USDA loan and will end with very little if any closing costs. I have the opportunity to buy points to lower my mortgage. The minimum rate i can buy is 6.5% and it will cost me $4,333 the highest rate I can get will be 7.25% and they will actually credit me back $633. The difference between the 6.5% payment and the 7.25% payment is $165/month or $1980 a year. Using the COC formula COC=Annual cash flow/cash invested I found that 6.5% was $1980/$4333= .456 or 45% COC return. (not bad i'll make my money back in a little over two years) the 7.25% is ($-1980)/($-633)= 3.12 or 312% COC return on my money which is x6 more then the lower rate. I put the amounts as negative because i am not receiving 1980 and i am not investing the 633- its actually being credited to me. Since I am house hacking i will not be covering a majority of the mortgage & I plan on using the 4333 on buying another property that will make me much more the $165 a month. Also if the rates fall I plan on refinancing anyways which would cost me about 5k) Do you agree its a better use of my money to invest on another property vs spend on lowering my mortgage $165/month?

Just an update, I wasn't able to secure financing for the property. Went ahead and pursued another place however I am going to keep trying because this is a cash cow!