All Forum Posts by: David Drew

Is this club meeting in August?  This Tuesday, 8/23?  

Thanks @Cameron Tope!  Your read on my uncertainty is spot on.  Going to keep trying to move forward.    

Hi,

I am new to the REI game and I'm planning to invest in Binghamton NY. I am interested in buy and hold, cash flow investments. I am currently assessing a deal on 3 multi family homes (2 dup, 1 tri) listed for $55k, $65K and $65K, respectively. The owners have left the area and do not want to manage remotely. Each apartment is currently rented and the Cash on Cash is high. Rent vs. Sale Price is in the +2.5% range and the houses are in good condition. On its face, the deal looks very good, especially if I can negotiate the purchase price down based on a package deal for all three. Problem is (go figure) that I'm not sure I can raise the capital need to do the deal yet and therefore, so I'm looking for suggestions and feedback on how to do that. Here are some of the things I'm considering:

• Owner financing.  If the seller is even mildly agreeable, what would be the best way to propose this?  If I crafted a proposal for the seller to finance a portion of the down payment, what might that look like?  If I could get the $175k down to around $160k, that would be a start.  Then, I think I could come up with around $20k in cash today and would be looking for owner financing for somewhere around $20K.   
• Mortgage options. I think I can get financing for 75% of the purchase price for all three houses. I think it would have to be 3 separate mortgages but that seems overly complex. I wonder if I could buy and finance them in an LLC and whether that would be ideal?
• Seeking Partnership.  I have some friends and business partners who may be willing to form a partnership.  Other than the pitch, I have no idea where to even begin in terms of styles and types of agreements.  I'd probably want to start by looking for capital, paying a rate to the partner and owning 51% of the partnership.  Not sure.  

Hoping the BP knowledge base can help with some suggestions.  

I am new to BP and I've been trying to absorb as much information as possible. My family and I moved to a bigger house and rented the old one, about two years ago. We've been extremely fortunate with our existing tenants and I'd like to buy another property. My existing rental is in a really good community, has 10 yrs left on a 15 yr mortgage where I owe $87k on $130k and rent for $1400. PITI is ~$1100 with around $550 going to principal, $300 to me in cash. It seems to be working out though if I apply a 2% rule, the rent actually looks a low. Thoughts?

I'm really interested in understanding the best ways to finance my next investment. I have a little cash (maybe $10k) to spend on a down payment and a large, untapped HELOC with a local credit union that I'm not sure how to leverage.

I'm in Vestal NY in Broome County and there are a lot of multifamily units for sale. I started looking at the 40-50k homes but now I'm wondering, since I've had good luck with a 'higher earning' tenants thus far, if I should I focus there. At this point, I think my decision is going to hinge on whether I buy a $50K multi-family and use $10K of the HELOC for the down payment / $10k Cash OR do I finance with a little more debt and buy a more valuable property closer in price (~$80-$100k) to the one I have now...which makes me less comfy.

Thanks!

Dave

@William Haller

This is great information.  Thanks!