All Forum Posts by: David Bellmont

My wife and I have been approached by her parents about purchasing the house that she grew up in and that we live in currently. The property itself has an older two family building on the lot and then a newer duplex attached by a breezeway (the city would not let them split the lot into two separate properties and any new structure had to be built attached to the old building). Three of the units are rented to tenants, one unit is where my wife's sister lives, and my wife and I live in an unrecognized basement unit which is technically unrentable because it does not have a second egress point. My wife's parents ultimately want to split all of the units into condos so that they can keep one for my wife's sister and sell us the older building with a chance to buy the third unit in the future. His one sticking point is always having one unit for my wife's sister to live in. Is there a way to avoid splitting the property into condos while putting in the sale agreement that the sister will always be able to live in her one unit? Also her parents are interested in owner financing the deal, but they still owe $170,000. Would we be able to take out a loan to pay off what they owe, and then they finance the remaining balance. Can anyone provide any insight to how we could structure the financing through her parents/the owners? Any help would be greatly appreciated. Dave

My wife and I have been approached by her parents about purchasing the house that she grew up in and that we live in currently. The property itself has an older two family building on the lot and then a newer duplex attached by a breezeway (the city would not let them split the lot into two separate properties and any new structure had to be built attached to the old building). Three of the units are rented to tenants, one unit is where my wife's sister lives, and my wife and I live in an unrecognized basement unit which is technically unrentable because it does not have a second egress point. My wife's parents ultimately want to split all of the units into condos so that they can keep one for my wife's sister and sell us the older building with a chance to buy the third unit in the future. His one sticking point is always having one unit for my wife's sister to live in. Is there a way to avoid splitting the property into condos while putting in the sale agreement that the sister will always be able to live in her one unit? Also her parents are interested in owner financing the deal, but they still owe $170,000. Would we be able to take out a loan to pay off what they owe, and then they finance the remaining balance. Can anyone provide any insight to how we could structure the financing through her parents/the owners? Any help would be greatly appreciated. Dave

My wife and I have been approached by her parents about purchasing the house that she grew up in and that we live in currently. The property itself has an older two family building on the lot and then a newer duplex attached by a breezeway (the city would not let them split the lot into two separate properties and any new structure had to be built attached to the old building). Three of the units are rented to tenants, one unit is where my wife's sister lives, and my wife and I live in an unrecognized basement unit which is technically unrentable because it does not have a second egress point. My wife's parents ultimately want to split all of the units into condos so that they can keep one for my wife's sister and sell us the older building with a chance to buy the third unit in the future. His one sticking point is always having one unit for my wife's sister to live in. Is there a way to avoid splitting the property into condos while putting in the sale agreement that the sister will always be able to live in her one unit? Also her parents are interested in owner financing the deal, but they still owe $170,000. Would we be able to take out a loan to pay off what they owe, and then they finance the remaining balance. Can anyone provide any insight to how we could structure the financing through her parents/the owners? Any help would be greatly appreciated. Dave

My wife and I have been approached by her parents about purchasing the house that she grew up in and that we live in currently. The property itself has an older two family building on the lot and then a newer duplex attached by a breezeway (the city would not let them split the lot into two separate properties and any new structure had to be built attached to the old building). Three of the units are rented to tenants, one unit is where my wife's sister lives, and my wife and I live in an unrecognized basement unit which is technically unrentable because it does not have a second egress point. My wife's parents ultimately want to split all of the units into condos so that they can keep one for my wife's sister and sell us the older building with a chance to buy the third unit in the future. His one sticking point is always having one unit for my wife's sister to live in. Is there a way to avoid splitting the property into condos while putting in the sale agreement that the sister will always be able to live in her one unit? Also her parents are interested in owner financing the deal, but they still owe $170,000. Would we be able to take out a loan to pay off what they owe, and then they finance the remaining balance. Can anyone provide any insight to how we could structure the financing through her parents/the owners? Any help would be greatly appreciated. Dave

Allen Fletcher Thanks for the great advise. In no no way do I want this potential deal to negatively affect any relationships I have with family, so making sure everything is in writing and that everyone understands and agrees with the terms is imperative. From your experiences is there anything that absolutely needs to be included in the terms to protect everyone? Or is each case unique? Rick Maningas I must admit that I am not entirely sure what you are asking. This would be my very first real estate property, so I have hardly any experience especially when it comes to owner financing and all of the options Ramsay are available. Would you mind explaining a bit the benefits of structuring a deal this way?

I have a possibility of purchasing a property from someone in my family. Has anyone had experience with owner financing and options on how to structure the deal? The property currently has around $200k mortgage and would appraise for around $800k. Any insight would be much appreciated!

@Kelly Davis @Nefera Croom @Elisha Keller

I just went to the first required meeting for the NACA mortgage program. It provided a very lot of information, and they were able to lay out everything that is required to qualify. They made it seem as if the process can take as little or as long as you let it take, but that the quickest estimate was 90 days from initial meeting to closing.

I am looking to find a multi-family house and then live in one unit while renting out the others. I think that NACA offers a very unique opportunity for first time homebuyers to gain equity while putting very little down upfront. It was mentioned many times that this mortgage program is not for investors, but I believe that by searching for the right home that meets certain criteria, a home purchased through the NACA could indeed by a good investment.

I look forward to hearing from anyone if they have any other insight. @Faith Brashear can you provide any other info about the NACA that hasn't been mentioned already?

New Investor looking to find a buy and hold property in the greater Boston area. Not just here on BP but from other resources i have heard that the Chelsea and Dorchester areas are the next up and coming areas. @David Cahill and anyone else looking in the area:

I have analyzed a bunch of different listings and still can't seem to find a property that cash flows based off of the projected monthly income. Most properties easily generates enough rent to cover all monthly expenses, but not enough to cover anticipated unknown costs such as: Cap Ex, Repairs, Property Management, and Vacancy. 

@Neil Gulden I'm interested to know how you calculate your 20% cash flow for your Dorchester property. Are you including future repairs or Cap Ex repairs in your expense column, or are you just putting aside a portion of that 20% cash flow?

Having started my search for my first real estate property, I am looking to take advantage of some of the great first-time home buyers programs. The Massachusetts Housing Partnership has one such option, the ONE Mortgage. Which allows first-time home buyers the benefits of:

-3% down for Single Family Homes, Condos, and Duplexes / 5% down for three family properties

-A Low Fixed Interest Rate

-No Private Mortgage Insurance

-And for those who qualify they will even subsidize a portion of your mortgage payment for the first 7 years of the loan.

I am curious to know if anyone out there from the BP community has any experience with this loan option, or of any other similar options?

Thanks,

Dave

Hey Ashley Owens another new BP family member from the Boston area. I am looking to get into the real estate game with a buy and hold owner occupied rental unit. I would love to hear more about your experiences and to bounce ideas off one another. Please fee free to contact me at any time