All Forum Posts by: Eddie Freeman

Hey everyone I have a potentially great deal and I need some creative ideas on how to make this work.

Background:

Driving by my local area I saw a 4 plex, basically a duplex and two single family homes attached. So I found the guys address and went to see if he was home, no one was home. the house he lives at is a even bigger rental, in the same condition!! So I for a better word stalked his house driving by every day, and this weekend he was home, I mustered up the courage and knocked.. no answer... then I had a spare sheet of paper in my car, wrote a message expressing my interest in his property, left all my contact info. 2 days no call.. started to get discourage , then this morning I received an email from him!!! We are scheduled to go see his house I initially showed interest in! Very excited I got my foot in the door because it is the definition of a brrrr property!

Where I need your help:

So this gentalman is 85 years old, both houses need work that he is not able to do. So I want to buy this house, but I need to try and get both. What would be a creative way to get this done. I’m thinking about buying this house, and offering to purchase both properties with a clause that he can live the rest of his days out at the house he is currently at rent free and I will take care of the maintenance, but that I can remodel the area he isn’t living.

Let me know if there’s any suggestions?

I’m interested to how you will find them, I’m in the middle of the same situation! I’m going to go the direct mail route because I’ve called, knocked on the door, and even went as far as messaging an assumed relative on Facebook... I get nervous but then think to my self... “you could possibly make 100k by knocking on a door” and the fear goes away!

Really appreciate it Chris! Be keeping an eye on that inbox! 

I have not gone down the lending route yet I will have to schedule something because I’m fairly certain you’re correct on the 20%, I will have to check into it. 

I would love to try and get my foot into a 4 plex but there are none around here for sale at the moment, but that could change by the time I get prepared. 

My father is a local contractor who would like to pursue this venture with me and would have him take a look at the house with me to give a rough estimate. But you’re right the fact that it’s not off the market is strange, so maybe there is something off. 

I really appreciate your advice! You’ve given me a much needed reality check, and opened the door to even better possibilities! 

Thank you for the reply Chris! Nice to see a fellow Alaskan! I'm was thinking about trying to use the brrr method depending on the real estate market at the time, I'd really like to avoid the capital gains tax if I could. I need to look into the lending process, I would like to have it financed and try to use my savings for a 10% down payment and use my personal loan from family to rehab the place. the SFR in the area usually run +/- $1200/mo, and I'm looking at deal now that has been on the market for a while, I went and did a drive by yesterday, it's a 3b 1 bath w/ an garage it appears they converted into a room that can be turned into a bedroom. It is a 3 min walk to the high school and 5 min walk to the middle school, the houses surrounding area ive seen listed/selling between 270-320 recently. It's currently listed at 130k but I would only want to try and get it at 115 after closing costs. But the multi family is the end game plan, 20% down on a lot of places here is spendy, I don't know how my girlfriend would like moving out of our big house to live in a duplex for a year to get a lower down payment lol. Taking a step back i agree with your reasoning on the summer idea, It wouldn't be a good idea to be that guy in this Small of a town.

Hey everyone! First post and very excited to be on the forums and post for the first time. I live in Ketchikan Alaska, the house prices are very high in this area, but there is the occasional deal. 

So my situation. I was fortunate enough that my grandfather bought a house up here that I live in, pay about 400 in utilities /cable internet. a month (we collect rainwater so no charge for water!) and 2000/ year in insurance. I rent out one room for 800 dollars a month. Im fully time employed make around 3200 take home a month. And we receive a dividend every year of around 1500 +/- . My dad is a local contractor and we are thinking of teaming up investing in real estate. 

My plan: 

We are looking to try and get a loan form my grandfather for 100k and negotiating a interest rate of 10%+(he will probably go lower but offer high out of good faith), my thinking is buy single family homes flip them, we estimate we could do about 2-3 a year for the first year, and then invest our potential profits  in multi family homes and rent them out to get a cash flow and build equity. Also another idea I have is Ketchikan is a huge tourist destination, our population doubles in the summer months, but I have an in with a tourist company that I could rent a multi family by room to increase my income, and the tourist company would deal with most of the drama that the tenants would have if the problem pokes its head up. But in the winter there are no tourist, but I could possibly line up a rental agreement just for the winter months, or even possibly move a family into a recently flipped house for a reduced rate to still achieve some kind of money flowing into it. 

So that’s my rough draft. Be as critical as you can be with me, tell me I’m an idiot, I invite it, I’ll take any advice I can get to do this right and avoid problems in the future.