All Forum Posts by: JC Espinoza

Currently in the market for about 6 months for a small multi-family 3-4 units, I'm pre-approved, and inventory is low. Since covid my loan officer has informed me that FHA now requires 12 months reserves for a 3-4 unit property (12 monthly payments of the loan) for example if my monthly payment is 2000 I would need an extra 24k for reserves on top of my 3.5% down payment and closing cost. This is definitely setting me back on purchasing my investment/first property. Anyone else having this problem, I'm in Northern California. My loan officer did notify me that I can do a conventional 3% or 5% on a single family home with a mother in law unit, but those are scarce and hard to come across in my area. And conventional 15% down on a true duplex.

The number work better on a 3-4unit property in my area.

Any advice, should I keep saving until I have enough reserves?

I’m still looking for a single family with an in-law units but they are rare.

Should I buy a single family home?

Should I be more patient and wait?

Hey BP! I’m having some issues taking my first steps.

Looking to buy 2 property’s via seller financing. Both are in the same area both are under market and I want to do a cash out re-fi in the future.

But I have never done seller financing so I’m not sure what steps to take or what would be my first steps.

Would I write up a purchase agreement first?

Then get it notarized legally through an attorney? (Is this required)

Then would I take this paper work to the title company?

Having some trouble with the steps I need to take to make this possible. Any advice would help!

Hello BP! Looking for help/information.

I’m looking to buy 2 single family homes via owner financing. Buying to the homes for 80k each home with a 5k down payment on each home. One home in vacant the other is rented. The homes are in my home town and I live about 5hrs away.

Both homes are currently under a owner finance. With about 30k owned on 1 home and 45k on the other home still. The current market value for a 2 bed 1 bath home in the area is 120-145k.

My question is can I still owner finance a home that is currently under an owner finance?

Would they homes have to be paid off for the seller to sell them to me?

Would it be best to try to get a mortgage from the bank to purchase these homes?

I have not looked into to see if they currently have a due on sale clause.

How would you go about this situation?

I have an 770 credit score and 2 year of employment history.

Any information/advise would be greatly appreciated!

@Ryan Plummer @James Chambers @Jonathan Stone

Awesome! Have a few deals in Klamath Falls lined up, not to sure if I want to keep them or just whole sale them. Since I do live out here in Eureka On the coast I don’t have a team in Klamath.

Any investors in the Klamath Falls OR area? Looking to network and invest in single family and small multi-family. Thanks!

Hello everyone! I’m looking to establish a few more lines of credit. Currently have one with Wells Fargo bank, I like it because it easy to use and make payments on the mobile app. Any recommendations on another bank that is online/app friendly. I prefer to transfer funds and make payments online, much more convenient. Thanks for reading!

Currently looking at a 4 unit property, with one of the units is unfinished. It’s not in my area but back in my hometown where my dad lives (very handy man) and would be able to finish the unfinished unit. with the 4 units rented it would be a 2% property, I don’t plan on living in one of the units, don’t plan on moving, I live about 4 hours away, I go that way often. The property owner owns it outright. He said he would consider Owner financing, but leaning towards more a cash offer. I have a few questions.

Is a 3 year balloon to short? Should I aim for 5?

Once the balloon is due can I get a loan from the bank on the property to pay the ballon payment to the owner?

Once I buy the property and have all 4 units rented, can I now go to the bank and get a loan to pay back the owner, if so do I have to wait a certain time, such as 6 months? 1year?

Not sure if I can get a conventional loan from the bank since one of the units is unfinished and not rented, He just wants the money to put into his home, says not in a hurry to sell, any advice or possible ways to finance would be much appreciated.

Does anyone know if there’s a podcast where they explain owner financing, what # it would be, or a good place where I can learn more about it such as structuring a deal etc?

@Travis Gibson thanks for the reply! How do you feel about the other unit I rent out covers 75% of the total monthly expenses such as insurance, taxes etc? I’m only left to pay the other 25%, let’s say the the 25% I’m left to cover the rest of the expenses is half of what I’m currently paying for rent. So I would be cutting half of my current rent in witch I can put aside to reinvest, save for those big expenses that would eventually come up, or put into rehabbing. Can you call this a good deal, or something I should stay away from and find a property that at least breaks even or little cash flow? Any advice is greatly appreciated!

@Greg Dickerson great advice appreciate it! Would a good way to try and find owner finance deal would be ‘driving for dollars’ sending out post cards etc. things like that? What’s the most effective method you find to be effective?