All Forum Posts by: Jonah Walker

Say he doesn't do the 1031 exchange, would you still recommend the 190k for a smaller down payment?

I have a friend that is selling his rental property for $180,000. He was making $1,500 a month. He is offering to do a land contract with me, so basically owner financing, correct? Anyways. He was talking about a 30k down payment, with a 9% interest rate for 4-5 years. 

The benefit of this, in my eyes, is the ability to purchase another home with a traditional loan in the near future. 

But, I would be a first time buyer, so a lower down payment is appealing as well as a much lower interest rate. But, it would be harder to get a traditional loan on a second property in the near future.

All of this is assuming I can get a traditional loan. I was preapproved, (I dont know how much that really means), about 6 months ago for $200k at about a 3.2% interest rate.

I am hoping to get some input, maybe have someone run the number for me and see the big difference. Or correct anything I may have misunderstood. I am a 24 year old trying to get into the real estate game and any help at all would be appreciated, thank you! 

Check out Vero Beach. I currently live there. I am new at investing in real estate so I'm not 100% sure it's the best market, but It's worth looking. Best of Luck!

I found a property listed on Zillow at an asking price of $179,999. It is a duplex with one side being a 3/2 and the other a 2/2. The building has a new roof, Installed in 2017, One side of the duplex has been remodeled and the other is in good shape. Both side are currently occupied and according to the landlord, they are great tenants. The rent he is currently collecting is $2,035 combined. The property was initially listed at $229,000, but has clearly been reduced since then. It has been sitting on Zillow for over 150 days, so I am sure I can get the price down even further. The thing is, this property is across the state and I am unfamiliar with the location and I haven't even looked into securing a loan yet. I was just practicing what I learned in Brandon's book and came upon what I think is a good deal. According to the analysis calculator my CoCRoi would be about 12% if all things are accounted for. Being a first time investor, I'm just a little unsure as to what I may be forgetting. Any advice would be greatly appreciated! Thank you!