All Forum Posts by: Glenn Lovelace

 Thank you so much David. This is phenomenal advice. I think I need to find a way to reduce the risk for both the seller and myself. Maybe I can round up a partner or two to take on some of the burden.

Glenn

 Hi David,

This is my greatest barrier on the property. I barely have the capitol for the down payment.Closing may have to go on credit cards. I think it's a great deal but I'm wondering if it's worth the risk? If it works out this would be a property I could pass down over generations. If not it could get ugly quick. What would all of you do? 

Glenn

 Hi Ned,

Thanks for the reply. I was hoping the seller would let it season for two years before he tried to sell it but I guess it's up to him. Do you thing after two years of on time payments the seller would still take a huge hit?

Glenn

 Hi Wayne,

I was kinda worried about that.  Would the low rate affect how well he can pass along the note? Is there any better structure that would help his case? This is what he agreed to but I'd hate to leave him stuck.

Glenn

Hey Jeff,

So with the first part the owner plans on selling the note shortly after the transfer but you're correct.  I need to request that there is a transfer in the event this happens before he sells the note.  Would you do this in the contract? Is there something special I need to do to make sure this happens?

My strategy is long term buy and hold.  I plan on refinancing as close to the balloon as possible with a new conventional 30 or 20 year note.

Glenn

Thank you Stacy for taking the time to look it over. The terms are that the 625k will be financed over 30 years with a balloon occurring at the 7 year mark.  

Yeah the heating is for both.

I'm pretty sure trash is included in the taxes here in the city.

What would you set aside for CAP/EX?

My hope is that at that time the property will have enough equity to make refinancing a breeze. From my calculations the principal remaining at that time will be 479k. Thanks again!!!!

Hello BP,

It's been a very long while since I posted here on the forums, but I never stopped working towards my second buy and hold.  I've been studying up and absorbing everything I can from this site and from listening to the podcasts while I'm supposed to be working :).

So this week while running the numbers on multi-families (I do that in my spare time) I came across a potential life changing property.  I came across a seller who is retiring that wanted to cash out his empire and ride off into the sunset.  He's pushing 80 and didn't want to wait 7 years for the balloon.  So from my studies here in Bigger Pockets Land I new that the seller could still decide to carry the loan then turn around and sell the note the next day. Win win for both of us.

From back and forth with the buyer we were able to settle on these terms for seller financing:

Asking Price: 625K

Offer Price: 625K

Rate: 0%

7 Year Balloon 30 year Loan

35K Down

Stats on the Units:

Neighborhood: Baltimore City Great Neighborhood - Bolton Hill - Walk to MICA

6 Units

2Units rented at $1200

4units rented at $895

Yearly Repairs:$4K per yr

Water:$2300 per yr

Heat:$3500 per yr

From my calculation I will cash flow 2335 per month after I plan on 10% for management saving 10% for Vacancy and Maint and 200 for Insurance. Everything looks good to this point but I wanted to run it by the best REI site in the world. What do you all think?

Glenn

I see. Thanks for the clarification @Wayne Brooks . I appreciate you replying so fast!

Hi All,

I'm working through some of the specifics on a 203k loan and am having trouble finding an answer to my tax question. I'm still learning so maybe this is a dumb question. If I bought a 3 unit apartment building with a 203k loan that needs a total rehab, would I be able to write-off the improvements on my taxes as expenses even though they were financed through the 203k loan. I'm thinking in the way a new fridge for one of my units could be considered an expense. Thanks for any input on this.

Congratulations @Jennifer H. ! As a beginner I'm always curious as to how everyone handles their first property. I'm also trying to invest in a long term hold that will support me for years to come. Any tips you can give a noob? BP is great isn't it?