All Forum Posts by: Clinton Davis

 Ok Thank you Charles.

I bought a house from an individual this year for $55k. I put $3,500 down and he is getting 4% amortized for 30 yrs. on the $51.5k balance. The property is worth about 90-100k right now. Would I be able to cash out refi the property? He says he doesn't mind what I do as long as I keep making my scheduled payments to him. So, with a 70%LTV cash out, would I be able to get this 70% on the ~100k and not pay the owners note off? Or just on the equity that I have on this property ~$50k?

If you're an entrepreneur, it's pretty clear who to vote for. 

Investment Info:

Single-family residence buy & hold investment in Walls.

Purchase price: $55,000
Cash invested: $6,500

2br 2bath. SFH. Owner financed at 4% for 10 yrs. with $3500 down and rehabbed with myself and my father another $3000. It was a cosmetic fixer upper.

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

owner finance. Little money down. Cash flow

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

At my job. I overheard a customer complaining about his satellite TV bill so I recommend he try Hulu or YouTube TV and he said he doesn't know how so I offered to help him with it. While at his house setting it up he mentioned he had 2 rentals he wanted to get rid of....

How did you finance this deal?

owner finance.
$3,500 down
4%
10yrs.

How did you add value to the deal?

cosmetic rehab. including new lvp floors and paint. New hardware throughout and some minor other work.

What was the outcome?

Rented with 1yr lease for $1015/month. Also, I convinced owner to delay payments until July because of Covid. But I had the house rented out by June

Comparables in the area are around $100k.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

no.

2 questions now that I have you here.

I have bought 2 houses using owner financing this year to add to my small portfolio.  Do I need to include the note payment for the houses on my debt to income ratio?  My guess is yes of course since I use my rental income but just wanted some clarification.  

My w2 job doesn't show much income but I own 2 houses free and clear and just bought these 2 more houses over the covid19 shutdown.  What would be the best way to qualify or refi for a loan to buy more properties?  Thanks.

 Thanks for your advice.  I will probably have it built into the rent and be responsible for the water/sewer up to $50/mo.  and tenant is responsible after that.  

Not sure as to why.  This is my first time with this situation.  I own 2 rentals in the very next town over and tenants are fully responsible using their name.  

 So should I jist build the price in my rent/month based on the average bill?  or should I contact them every month and tell them what is owed ?   

I have a property that doesnt allow for the tenant to get water in their name.  The water must be the responsibility of the actual homeowner (me).  What is the typical structure that you all have done in dealing with this situation?  Should I pay the water bill every month? Should I trust that tenant will pay bill every month if I have the bill sent to them?  Thanks for your help.

It's definantly frustrating and looks rediculous....but that is how some people live.  I'd just leave it be unless you feel it's a safety hazard for fires having a garage full of flamable junk or an invitation for mice to breed and habitat in countless boxes of old smelly clothes that they'll never wear again.  God forbid they abandon the house one day and leave you with all their junk to clean up.  

repaint it a modern grey color and it will accent the red nicely.