All Forum Posts by: Cassidy Burns

@Jon Holdman Thanks for this.  

Another question: 

How is the principal pay down calculated if they own free and clear?  Set up an escrow account that I make payments to?

Also, the seller is an older gentleman, if something were to happen to him how is the contract continued?  

Thanks so much

Hi BP,

I have an opportunity to do my first seller financed deal.  My property manager knew that I was looking to acquire more units and brought this deal to me, power of networking!  Below I have included some of the details that I have, I am going this weekend to view the properties and find out more details:

2 Different Duplexes:

*$39,000 for Duplex #1 (Assessed at $47,500)

*$20,000 for Duplex #2   (Assessed at $36,200)

Duplex #1 Rents: 

*$600 and $400

*$600 and $200

All In $1,800/month.  After running numbers i'm looking at around $780/month in positive cash flow .

The seller owns these properties free and clear and wants 5% interest and for me to pay any transfer/closing costs, i'm estimating $1,500.

My question is, how do you pay down principal on a deal like this?  Would it be worth it to do maintenance/renovations?  I typically like to add value by doing about $7,500 each building, $15,000 (dependent on viewing this weekend).  

Are you typically just doing seller financing for cash flow?  Eventually if I do renovation would I want to do bank financing?  

Thanks so much for any feedback.

@Daniel Pitta you most likely will have to put the person moving into the den on the lease as most leases require all individuals living in the unit above the age of 18 to be stated on the lease!

Hope this helps

Welcome @Eugene Cho

Thank you @Debbie W. and @Christine Kankowski I have asked the tenant for proof of deposits!

Hi BP,

I just had a new tenant apply for one of my rental properties.  Older gentleman, very nice guy and checks all the boxes that he would be a great tenant, BUT.... I have no way of verifying his income.  He is collecting a check from social security and then has retirement income as well.  Any advice on how to verify?

Thanks in advance.

@Rhonda Harrison agreed with @Russell Brazil.  Yes investors are actively purchasing but in my opinion it is good for the district's economy.  With growing population, taking a single family lot and putting it to its highest and best use, based on zoning, is giving more individuals the opportunity to move into the area.

That being said, there are still plenty of ares that the middle class can purchase.  Once they purchase it is a great opportunity for them to begin to generate wealth as the developers/investors help their property appreciate in value by increasing the comps.

5-10 years down the road they will be extremely pleased that they purchased when they did.

Hi BP,

A little late, I know, but I am interested in how everyone answers.

1.) 2017, how did it turn out for you?  Goals achieved?  Did you surprise yourself?  Maybe it didn't turn out like you wanted....

***Which leads me to question #2

2.)  What do you want to accomplish in 2018???  Let me learn some big goals!

Hey Lisa,

You have many options:

-Continue to Buy and hold

-Convert to condos and sell.

-Sell as-is , 1031 Exchange and purchase another multifamily/investment that will have more manageable tenant situation.

-Sell, pay taxes, ,enjoy the profit.

Please feel free to reach out!

Hi @Olivia Byanyima welcome officially to the site!  Please feel to reach out if you have any questions regarding the real estate market in DC.