All Forum Posts by: Christian Thompson

Thank you @Brad Hammond. So my best would be to talk to a lender and see what type of loan they would do and if they would go off NOI/Cap rate or use traditional comps for duplexes in that area?

Hey Yall! 

I am currently working on a off market deal. It's 3 duplexes. They are right next to each other with the third duplex being behind one of the others (2 duplexes on the same lot). I work with seller. He is having trouble getting a couple of the units rented and the units are outdated. He hasn't given me a price yet, but he is willing to seller finance.

If I am able to get this property my plans are to bring it up to date and then refinance out of the sellers finance. I will also house hack this property. 

My questions is: When I go to refinance would the lender look at this property as commercial or would they look at it as residential? I know the appraisal would be different for commercial seeing as they would use a cap rate. 

Thanks @michael Noto! Yeah they were just worried they were over paying. 

Thank yall! I will let them know!

My in-laws are in the process of buying a house. They have an accepted offer and are in the inspection phase. My father-in law found the plans for the house and it shows that the total living is 2600 sq ft. On the MLS they are stating the total living is 3300 sq ft. What do they need to do? Re-negotiate the price?

@ Dave Foster and @Alex Olson . Thank yall for the advice!

I recently just rented my SFH that I bought in 2018.

Backstory to all this: I bought a SFH at $176,500 in 2018. I had 2 friends move into it with him helping pay down the mortgage. 8 months later I landed a new job and had to move out of state. At this time I had only one friend in the house. My note each month was $1,140. He was only paying $1,050. I put up the extra $90 since I still had some stuff at the house. He recently moved out in October. I got the house rent ready. Putting about $1,500 dollars into it (Dishwasher, microwave, new carpet, paint, etc.). I then had to come out of pocket $8,700 for a new roof. I had a renter move in, in November. Renting it out for $1,600/month. They recently called me and asked if I would be willing to sell it. Comps right now for the area are around $190K - $195K. I'm just looking to get someone else's opinion on the situation. I could sell for sale by owner and not have to pay real estate fees and 1031 exchange it into a property or properties that cashflow better. Here's what the current numbers look like: I do manage the property myself, so technically is cashflows $219. But I also did just come out of pocket around 10K so it will be awhile before I see that come back. Thanks in advance for any advice.

@Reece Iovine Thank you!

@Will Fraser Thank you! When do you find it worth it to buy a BRRRR without using all cash? Can you give an example? Would seller financing really be the only way to do this? As far as I know a bank won't lend to a property that is in bad shape. So, would you really need to find a property that is just outdated and needs cosmetic updates in order to get a loan from the bank and based of your numbers when analyzing the deal it would have to be substantially under market value?

Is it possible doing the BRRRR strategy without an all cash offer?

I'm currently looking at a duplex in a college town. The asking price is 160K and it has been on the market for 1 year. The property looks like it would appraise around 185K. The owner is offering seller financing. Has anyone ran into the situation where the go through with seller financing and the refinance into a 30 year loan with a bank? Is it possible to do a cash out refinance? Almost as if it were a BRRRR property?