@Eric Veium Story is fairly simple. I have most of my savings in stocks and never really contemplated real estate. I stumbled across BP Podcast and started listening. The Market in my area is super hot for SFHs at the moment, I had a decent amount of equity in my home.
I called an agent friend of mine, had her list it. It was under contract in less than 24 hours. I told her what I was looking for and we started scouring. One week after the contract on my home was in place, my uncle called and told about this property that I might be interested in. It was much larger than, what my agent and I had discussed, so I wasn't bought in, yet. I talked it over with her and we talked about financing options with as little out of pocket as possible. I only wanted to use the equity in my home, not my savings.
She found a mortgage company who would do the bulk primary loan, which was about 68% of total purchase and a local bank who would do the rentals under a portfolio loan. Primary was 5% down and A little under 3% Apr. I Portfolio was 25% down and 4.5% apr on a 20 year am. Insurance on bulk loan is escrowed. Rentals with umbrella was out of pocket. Total cost to close was mid 50s with seller concessions on closing cost. I had an absolute rockstar agent, with tons of connections. She absolutely made this deal happen, all I did was pitch the idea.
The orginal asking price was 525k. First offer was 425 counter at 480. We settled on 450 with him keeping one acre to build a tiny home. I have first right of refusal on the one acre and tiny home, upon him moving or anything else.
The payments are a little over 2k per month and total rent currently is 7300 with room to raise in 3 of the rentals as leases expire. The most exciting part is there is tons of room to expand and I also intend lease the pasture part of the property, until I build more rental units. The entire property will produce income with in a couple of weeks..
