All Forum Posts by: Iain A.

Here are some notes and a couple photos from my appointment with the seller. I'll be going back to take a look at the second unit tomorrow if the tenant will cooperate.  The Seller will also have profit/loss statements and the current leases for me tomorrow. I'm contacting my GC to see if he can make it out there tomorrow as well to take a look at the place with me. 

The smaller unit is currently occupied by a Section 8 tenant, the seller informed me that she's in her mid 40's and has been renting from him for 2 years. 

There is a natural fire place in the first floor unit. 

Carpet is okay looking, probably won't last another couple years. 

All the windows are single pane.

Needs GFCI outlets in kitchen for first floor unit.

Dishwasher is broke on first floor unit.

Kitchens floors look rough, won't last another couple years.

First floor unit has wood floors throughout, minus the living room.

First floor unit has large bedrooms.

New roof as of 2013.

New furnace as of 2015.

Water heater is about 15 years old by the looks of it. 

Partially finished basement with split access between the the two units. First floor unit has washer/dryer hooks ups as does the section split off for the 2nd floor.

Bedrooms have large closets

Average Annual Cost of Gas is $84.67/mo

Average Annual Cost of Water is $113.39/mo

Electricity is metered separately

Drop ceiling in bathroom needs to be redone, not a big deal?

The two car garage offered with the property is in good shape, I'd like to rent it out for vehicle or boat storage. 

Parking is ample and well separated between the two tenants.

The terms listed in the Agent Remarks say the terms are $115,900 at 6.5% interest with a down payment of $8000 with a 30 year amortization. 

I recently got terminated from my job, so, I am unable to qualify for conventional financing lol with that being the case I figured some form of seller financing would be my best bet. 

I'm trying to run the numbers on this 2 unit Duplex in my home town of Port Huron, Michigan.  So, with the land contract terms of $115,900 at 6.5% with a 5 year balloon I would pay roughly $732 a month to the seller for 5 years then owe $109,000 which I would then finance through a bank, correct? 

With that being the case, is it appropriate to take the amount I'm paying the seller over the 5 year term and add that to the purchase price while I'm using the Bigger Pockets Calculator? 

The figures of $109,000 to finance after the term, $732 a month for payment and  total payment to the sell of $43,920 I calculated using this calculator:

https://www.bankrate.com/calculators/mortgages/bal...

Here's a link the PDF file I pulled from the MLS for the property, I'll be looking at it today at 5:00 pm.

https://files.acrobat.com/a/preview/fca537b9-43e4-...

Welcome to BP! 

If you have the income to qualify for a mortgage why not try pick up an SFR or get into a small multifamily?

You could get some tenants in there for a year or two while deciding on what to do? I read your stated goals in your profile, so, the question is which decision will allow you to pick up those two homes for the year as fast as possible in accordance with your other objectives? I'm in Michigan, even around where I live (which sucks), you couldn't get 5 houses for $100k that were move in ready, unless you're looking to do D Class 'renovations' for D Class neighborhoods and tenants? 

Wow, I talked to a contractor in my area and he was saying that it's closer to $60 or $80k for just contractor and material cost. I can't believe it's that much more in Alaska or that fees can amount to so much on top of just the cost for building the thing. So much to learn lol 

Thanks guys! 

Is there a podcast dedicated to live-in flipping??? I'm about half way through the courses required to become a Realtor in Michigan, I should be license by the end of the year so I want to start searching for a live-in flip. I should be able to qualify for about $100k in mortgage early next year as well, I have money saved and am handy so I think along with being a realtor a live-in flip would be a great way to get started. I should have access to most of the Detroit Metro area. My line of thinking is that there's gotta be a house or two in that entire area I could make several tens of thousands of dollars on in a couple years. 

Approximately how much did your duplex's cost to build?