All Forum Posts by: Chuck Astleford

@Scott Passman  I see that I did small calculation error.  the 231 is actually 191.  This is to repay myself over the next 5 years for the money I put into the deal.  I was struggling with if this was part of my return since I felt I needed to repay myself for the cost of investing.  Thank you for letting me know the other numbers seem realistic.

@Ned Carey thank you.  that makes sense.  I was struggling with how to categorize that money coming back to me as it will be replenishing the money I used to put down.

I am considering putting an offer in on a duplex.  The financials are as follows:

Rent charged $1400 total

Mortgage(land contract monthly payment) $300

Taxes $109

Insurance $72

Mgt Co $120

Utilities (landlord pays one side of utilities) $200

Maintenance $140

Vacancy $140

Cost to payback my $ back to me for down payment $231

Total cost of $1312 each month 

That means I'll make $88 a month if everything goes as planned (which it won't)   My question is what am I missing here.  The cost of the land contract monthly payment is only $300 per month and rent is essentially  $1200 because 200 covers utilities.  so that is a $900 difference.  I feel like I'm not using a correct assumption with something.  Any guidance would be helpful.  TIA  Chuck

I'm putting an offer on 5 rental houses (in a package) tomorrow and will be purchasing using a land contract.  Over the next few months I'll be doing repairs to increase value so I can refinance to pay off the land contact.  My question is -- the appraised value of the homes together is $110k.  I'm wondering if I should offer less than appraised value.  The rentals all cash flow (including holding money for property management/maintenance/vacancy/cap exp.) at or above appraised value but wondering how far low I should push.  Any schools of thought?  thank you

Thanks all.  I was worried it sounded to good to be true.   I have touched based with a couple people local that I know and will be going that route.   Thanks again

He offered 100% financing at 6%. Upfront fees of $5,900 that he said I could wrap into the loan. And a $3,000 EMD that I would get back at/after the closing.

@Saravanan Saravanan Great point. I will go try to go through a title company. I did receive a break down of all the cost. Thank you

I am wondering if anyone has worked with Derrick Cliton from CA.  I am considering having him fund a deal but hoping to find someone that has worked with him and could provide a reference.  thank you