All Forum Posts by: Corinne Ulloa

Good evening @Dan H.,

Thanks for weighing in on this! Not sure if some on my lines of comm were crossed from the original message but, I performed the 1% Rule and 50% rule and it appears that the property passed. See below:

1%: 2000 x 100 = 200,000 - The property is currently listed for 182k

50%: 2000 / 2 = 1000, which should cover the mortgage payment (if I change my original terms to put 5% down and get them to agree to a interest rate of 4% or less)

Thanks for the tidbits on how to quickly analyze a deal!

Have a fantastic remainder of your evening!

Corinne

@Dan H.undefined

 When you put it that way, it sounds REALLY good!

Thanks again!

Corinne

 Thanks, @Hamp Lee III, for taking the time to reply. Sound advice! 

Question 2 for you; how would you move forward if you were in my position? We do not have to move, rather I was hoping to get my foot in the rental game by renting out our current primary, all the while taking advantage of lower list prices due to the higher interest rates. According to Google, the median home price in my county in 725k and will definitely appreciate quickly.  This route would mean we'd hold 2 properties with high appreciation, improving our long game holdings and overall portfolio. Below are what I have defined as my RE plays in the next 0-6 month time frame.

OPT A

Renting out our current primary would fetch approx $1000 p/m cash flow. The new property with ADU for mid-term rentals has a potential to fetch around $1500-$2000 per month, partially offsetting our new mortgage.

OPT B

Staying in our current home and purchasing the 4-plex that is projected to bring in approx 1000 p/mnth and waiting the period required for the loan to be considered as serviced before looking for a primary?

Of course with either option the plan is to continue investing until our goal of taking over the World is met (Jk! I'm corny), with the next opportunity pursued being the STR in a college beach town in Florida.

A better question is probably, is there a way to accomplish it all today (I guess that I had more than 1 question😁 )

Thanks again!

Corinne

Hi @Chris Seveney! Thanks for taking that time to address my questions. I did not realize that it would go on my credit report or that it would be a factor in the process if the seller was financing it. I did a couple of google searches and they all stated that it wouldn't. Thanks for the information! I definitely do not want to commit mortgage fraud. As for the loan servicer, I agree on that, but for clarification of all factors, my credit is excellent so there's no need to build further. I have received preapproval for my primary home loan already and am in the process of looking for a home that has an additional dwelling on the property so that I can cash flow with a MTR.

Thanks again!

Corinne

Hello BP Community,

I am a newbie investor that is looking to jump into the market with a 4-Plex deal in a college town. I have had analysis paralysis and am ready to get this journey started. I have not had any conversations the with seller as of this moment, but am am only interested in the deal as a seller carryback or sub-to; depending upon the situation with their funding.

182k List Price

On MLS for 259 days (as of today)

1 - 3bed/1bth (rented)

3 - 1bed/1bth (all 3 rented)

The rents total about 2,000

The local realtor was unable to tell me anything about the seller's intentions when we spoke, so that makes it difficult to structure the deal taking that into consideration. The only think that I can gleam is that they should be pretty motivated with the number of days that it's been on the market. In any event, if all checks out with the foundation, roof and individual units when I go view the property, then I would like to hopefully get the seller to agree to the following terms:

2500 EMD

6 months of the mortgage up front - interest free 

Then between months 7-24 month begin paying interest at a rate of 6% with a balloon at the end of this term.

If I have not obtained funding to cover the balloon as of this time, I would like to insert a balloon extension with a penalty of 1% in interest for the following 12 months until the end of the 3rd year where the balloon would be due. 

What type of loan product should I look to pursue at the end of the terms? Hopefully loan rates will be more favorable at that time.

My motivations for wanting a seller carryback is that I am looking to purchase a primary home in the next couple of months and do not want to obtain conventional funding that will skew things with my credit and lendability. I'd like to use the 6-months of interest free time to make the exterior look more inviting and if any of the leases aren't renewed in the time frame, fix up the vacant apt to get higher rents.

Would you say that this is a deal worth pursuing? I just don't want to fall flat on my face right out of the gate.

Any comments/suggestions for structuring the deal will be most appreciated and welcomed.

Thanks,

Corinne