All Forum Posts by: Cassidy Burns

Hi BP,

I recently purchased a single family home that had a separate parcel of land on the property.  I am financing this property.  I am currently renting out the single family house and the neighboring house wants to purchase the parcel of land from me in a rent to own contract.  We have came to the terms of $3000 over 36 months charged at 12% interest.  So he will make payments of $114/month until this is payed off.  How do I go about structuring this?  What documents do I need to fill out to make this legal and credible?

Any help is appreciated as I am completely lost in this topic.

@Karla Yudy thank you for reading.  Yes I just recently read Grant Cardones 10x Rule and decided that I wanted to take massive action and really start to push myself in the sector.  I am being creative with how I am purchasing.  The first few were with my personal cash, after I starting gaining a little more experience I now have a a few investors that I am paying anywhere from 6-10% returns.  Also I have utilized a line of credit on a property that I purchased free and clear.  I am doing a cash out Refi at the end of September for 5 of the properties and will be able to pull out all of the cash that both I and my investors have put into the deals, pay them back (hopefully they will want to reinvest that $$) and do it again and again and again.  

Thank you @Rachan M. hopefully we can link up in the Washington DC area soon. 

Hi @Marina M., very good question.  At first I was basing my purchase prices off of the current assessed value.  I would purchase properties no more than 75% of the assessed value.  Some appraisers in the town (I now know which ones are a little tight) are not very generous.  I am not trusting my real estate agent more and basing purchases more on comps rather than the assessed value.

Hi All, 

The units are in SouthWest Virginia. Covington, Selma, and Clifton Forge VA. I own 1 condo in Washington DC as well that I am currently house hacking. That is 3 bedroom/3 bathroom. 1,500 soft. $2800 PITI, $321 HOA. Renting out 2 rooms for $1,250/each. $2,500 in income. So living in one of the most expensive areas in the world for $650 plus splitting utilities, extremely happy with this.

The units go as followed:

112 & 114 Duplex: $30,000 purchase price.  Appraised at $45,000 at closing.  Put $12,000 into it, expecting to appraise for $65-70k.  $1,020 in rent.  Will refinance in October

1551 Alleghany (SFH): $30,000 purchase price. Appraised at $35,000 at closing (disappointed in this). Put about $1000 and my own sweat equity into it, expecting $45-50k appraisal. $650/monthly rent.

1020 W. Jackson (SFH: $35,000 purchase price. Appraised at $45,500 at closing. Put $13,000 into it, expecting $65-75k appraisal. Currently vacant but expecting $650/monthly rent in the next week or so. Refinancing in October.

420 Mallow (SFH): Purchased $12,000 cash. Put $4000 into it. Took line of credit out on it. Appraised for $31,500, approved for $25,000 line of credit and used to purchase quadplex. Rents for $530/month.

303-309 Wintergreen (Quadplex): $165,000 purchase price.  Assessed at $229,000, got low appraisal at $180k at closing.  Will do a little work ($3-5k) and then get it reappraised.  1 Unit vacant when purchased.  Already occupied before closing for $625/month.  3 units under market value rents at $475, $550, $550.  Plan to have all of rents up to market ($625-650) by August 2018.  Current total rent: $2,200.  Expected rent: $2,500

1203 Staunton (SFH): First Flip... Currently Under contract set to close September 1 for $35,000, assessed at $69,000. Purchasing all cash. Got reno budget quote for $15,000 21 days all in. Sale Comps are $110,000 and $98,000. Really looking forward to this one.

Thanks everyone for checking in!  Let me know if you have any other questions or have anymore wonderful advice.

Good morning BiggerPockets,

It has been a great 2017 thus far, and I owe a lot of the success and triumphs to this site.  I started selling real estate in March of 2016 in the Washington DC area.  Our team, Trent&Co. focusing mostly on high end condominiums by local developers.  I purchased my first condo, primary residence, in November of 2016.  Not knowing what I was doing, but by the guidance of a mentor.  I found this site the in January of 2017, I listened to one of @Brandon Turner webinars on how to buy your first investment property in the next 90 days. I set a goal that night of owning 10 units by the end of the year. I closed on my first duplex in Covington, VA on March 1st and since I have purchased 3 single family homes, and as of yesterday closed on my most recent Quad. Totaling 10 total units, having another under contract and set to close September 1, I have hit my goal for 2017!! It has been a great year, and I am so grateful for the journey that I have experienced to date. I have recently increased my goal to owning 15 units by the end of the year, so 4 more to go. Thanks again bigger pockets, look forward to hitting the ultimate goal of 465 units by age 30 in 2022.

Hi BP,

I have a current inquiry of someone wanting to rent to own 2 different pieces of property that I own. I do not have any current experience with rent to own so any advice is appreciated.

The numbers:

Property #1: Parcel of Land (.25acres) Neighbor wants to purchase this.

I offered it to him for $3,000, he has agreed to the price but needs to do a payment plan over 2-3 years. How do I go about setting that up? $100/month in rent. $50 is put towards his purchase price? Also how do you handle the initial deposit? Once he has enough cash to purchase does he purchase through the bank?

Property #2: Single Family Home.

Purchased for $35,500

Renovation costs: $12,000

Sales Price : $72,000

Two different individuals have reached out about rent to own on this property. My initial plan was the following. Refinance, pull all of my money out, get a loan for $50,000. Appraised value will be $75,000+. Rent $700/month. $650 rent, $50 saved for home purchase. 3 year term. Again what do you charge for initial deposit? Do you still collect security deposit?

Thanks BP!

Hi BP,

I have a current inquiry of someone wanting to rent to own 2 different pieces of property that I own.  I do not have any current experience with rent to own so any advice is appreciated.

The numbers:

Property #1: Parcel of Land (.25acres) Neighbor wants to purchase this.  

I offered it to him for $3,000, he has agreed to the price but needs to do a payment plan over 2-3 years.  How do I go about setting that up?  $100/month in rent.  $50 is put towards his purchase price?  Also how do you handle the initial deposit?  Once he has enough cash to purchase does he purchase through the bank?

Property #2: Single Family Home. 

Purchased for $35,500

Renovation costs: $12,000

Sales Price : $72,000

Two different individuals have reached out about rent to own on this property.  My initial plan was the following.  Refinance, pull all of my money out, get a loan for $50,000.  Appraised value will be $75,000+.  Rent $700/month.  $650 rent, $50 saved for home purchase.  3 year term.  Again what do you charge for initial deposit?  Do you still collect security deposit?

Thanks BP!

Welcome @Quentin West it won't disappoint!