All Forum Posts by: Christopher Neil

I will be selling a duplex i just picked up on a Lease Option.  My question, since this is a duplex (i plan on lease optioning the 3 bedroom unit), what do i do with the One bedroom income.  My thoughts are, the tenant/buyer will be paying an option payment for the 3 bedroom unit to purchase the duplex.  I will be 'renting/leasing the 3 bedroom unit for the option term of 1 year.  I want to then owner finance the purchase to the tenant/buyer once the option term expires.  During the lease term i also collect the one bedroom rent?  After the option to purchase is executed from the tenant/buyer, and i owner finance, the tenant/buyer starts to collect the one bedroom unit rent?

So during the option period and i am collecting rents from both units, I'm pretty much a landlord because utilities will have to stay in my name because the duplex has one electrical service and heating boiler.  

Anyone have a similar deal?

Thanks for the reply @Account Closed Yes, my company will be purchasing.  I want to be out of land-lording for this property and just want to be the bank.  If i sale on a land contract is this possible?  And i want to try and avoid the short term capital gain buy not holding on to it for a year.

I am a full time buy and hold investor.  I'm changing it up with some cash i have.  I got under contract today a duplex in my area for $13,000.  A (3) bedroom and (1) Bedroom.  I will be paying cash for this purchase and the units can be rented immediately.  I want to owner finance this property to someone that will be living in the 3 Bedroom unit.  My question is this.  At closing, i will be putting the deed in my company's name.  i want to owner finance this right away.  How is this done in regards to short term capital gains, recording the deed? etc.  The property appraised for $41,000 and i will probably shoot for this number for a sales price with $3-5k down.

The one bedroom will rent for $600 with all utilities included and will make the owner occupants payment.  I'm just looking for anyone that has done this and can explain the proper steps they took.

Thanks in advance

Chris

Looking into Self Directed IRA investments websites, I looked at ahpfund.com (12% max return minus fees, etc) and lendingclub.com (under 6% return). Anybody have any other websites/companies to look into. My goal is that i want these investments to run on autopilot once set up. Thanks for any replies.

In my Opinion, absolutely a must to add the boyfriend to the lease, No matter how many other apartment(s) he has should be no concern to you, only your apartment.  I use a simple 'Addition of Occupant(s) Addendum to Residential Lease Agreement' form that both the current resident and new resident sign.  It states that the added resident must adhere to the original lease as well as be responsible for payments.  PM me if you would like a copy of the 1 page form.

Thank you for the replies, I signed up for a free trial run with Buildium and will check it out this week.

Can anyone suggest any rental management software that they have used and have been satisfied with.  I am a one man band with around 40 units in which I self manage.  I feel really 'old school' and would like to try and make my job easier.  First, I'm TRYING to hire an office assistant, after posting the job on indeed.com, receiving approx 50 resume's, and conducting about 8 interviews, I have yet to find a motivated and competent assistant. With that aside, I think the software would help me manage a lot more efficient.  Any help in appreciated.  Thanks

Thanks @Sean Cassidy, @Andrew Johnson, @Nathan Gesner for the replies, I'm looking at the house this afternoon. A little background with me with what seems should be an easy strategy for me to figure out. I am a full time investor and have been for about 10 years. However, I have just been buying buy and hold rentals with very traditional methods. I am a contractor and handle my own maintenance as well. It has become very overwhelming. I also have a hefty line of credit and cash reserve in which I buy with. In Short, I buy, rehab, rent, and of course refinance. I have also flipped about 5 houses in the past 5 years. For one, I'm about getting taxed and expensed out of business. In my Tri-County area in which I have property, Rents whether it is an apartment or SFH range from $550 - $700. So they are not very high. But on top of that, Real estate Taxes are going up EVERY year, and utility cost are going up making it hard on tenants to pay. Anyhow, I'm looking to go the route of a 'normal' investor with wholesale, lease-option, etc., etc. I can evaluate properties really well, and I know the ARV of the houses I want to try and deal on. My ignorance comes from applying the best method to make money on the deal from not taking ownership if I don't have to. The short term capital gains is not doing well for me.

To recap with this particular deal. She owns free and clear, needs the cash to buy a house in another town.  This house is in the town I live in, (approx. pop 4000 people), great location.  I will report back after I look at the house and get more details on what she is looking to do.

Thanks

Chris

I'm meeting with a seller tomorrow on a FSBO, She owns the house free and clear, great house, superior location, directly across from elementary and high school. Continuing, it is a 4 bedroom , 2 bath. She works in another town and has smaller children. Speaking with her she owns the house free and clear, but wants to sell to be able to purchase a house for her and her kids in the town she works in. She claims it appraised for 155K 2 years ago, she is asking 115K. But i think in reality it is worth probably around 120K and needs about 3-4K in repairs (flooring mainly) Question is, what is my strategy here with little money out of my pocket? I don't want it as a buy and hold

I'm a full time investor (commercial & residential) in northwest Pa and am looking for ideas to help structure a commercial deal.  I'm working from a 1033 exchange, I have a significant down payment, owner willing to sell two great cash flowing commercial properties and will owner finance part of the deal.  He does have mortgages on both properties and his payoffs are more than my down payment would be.  Looking for strategies to make this deal happen and to keep it positive cash flowing for myself, as that is what I live off of.