All Forum Posts by: Jon Kamantigue

Hello Biggerpockets community! I have an interesting situation with a property that my parents own. My mother wants to cash out a SFH townhouse (for retirement) and offered to sell the property to me and she would provide 30K kickback for keeping the property in the family. My sister and brother in law are renting it out now and plan to live there thru Dec 2016 but most likely Feb 2017. The unit needs some work. New furnace and possible AC, deck refacing, plumbing repair for one bathroom (ceiling leak), and 600sqft landscaping under the deck are the major updates needed. I'm trying to put this deal together, but given that this would be my first deal, I'm not sure how to follow thru. She wants to sell at $250K which I think its close to FMV given the repairs needed. If I fix it up, I feel I can get force the equity to $265K possibly $270K since there is one comp down the street that sold for $278K. I want to make an offer but I don't want my sisters rent to go up from $1450/month. I normally wouldn't do business with family but 30K is a large incentive for me since I have little capitol to start. Im trying to order an inspection for next week so I can figure my rehab cost. My question is about the topic of Subject-To or Seller Financing? I feel I can come up with an offer once I figure out my AVR minus all the costs associated. But funding is my problem. I feel like offering to take over payments would benefit my parents the most since this money is for there retirement. I'm just not sure how to proceed from here. Any feedback would be great.

Nice to meet everyone so far. 

Thanks @Shmuel Harris for the insight on NY market. I definitely had that  feeling. I'm looking to get my first deal in the Northern Virginia area. This first deal with my parent property is not ideal but its a start. Im caution doing business with family but I'm chasing the equity gift she is giving to me. At the moment, the property needs some update work. I'm trying to take over payments and then rehab it so I can sell in 6 months. The property is already being rented by my sister who plans to move out in December. The bulk of the equity would go back to my parents. Does this sound logical?

Hello, my name is Jon Kamantigue and I wanted to say hello and introduce myself the the BiggerPockets community.

I purchased my first property in 2003 for myself in the Northern Virginia suburbs when the market was booming. This place was a dump!!! I over exaggerate but I rehabbed the condo over 3 years while living it it just because I was handy. I loved renovations and took my time. My job at the time was an hour commute in the DC area and I sudden became fed up with my commute and felt it was time to sell my property. After some final sprucing, I put it on the market and 4 hours later I got 2 offers and made 150K off the property. I thought "Real estate was is!!!"

That led me to my second property in 2006, luxury hi rise condo one mile from work. I thought I was the ****!! But I found out it wasn't my commute that I hated, it was my job. I decided to change career into Photography. I moved to MA to got to photography school but what was I going to do with my condo? Corporate housing was my answer. I decided to rent my property furnished with utilities included as a corporate housing alternative. I mean there was a grocery store on the condominium property that was a good incentive for potential tenants. It started good at first and I found good tenants, but when the market crash, I was having a difficult time finding tenants that could cover all the cost associated. By this time I was living in NY. I managed it poorly with the help of my parents and realized being a landlord was very difficult. Now I thought "Real Estate is hard, and I'm an artist". I was questioning my decision making skills. I eventually found a tenant that stayed for 5 years but the rent was still not cash flowing like I wanted it to. Frustrated, I sold the property last year off emotion and I nearly burned thru all the capitol gains because I also quit my job.

There had to be more in life. I re-centered myself during this time, developed new goals and now I am working as a freelance photographer living in Brooklyn. These last 3 month I've since my photography business really grow but its still not enough. I had 2 issues, (1) I wanted my own photo studio that I could work in and (2) I need to save more for retirement. My answer, you guessed it, Real Estate. I'm going to Rich Dad education now and I'm taking control over a property that my mom owns because she's going to give me 30K kickback on top of the discounted FMV. Not what I hoped to be my first deal in RE Investing but its a start.

I'm hoping to get to know more of this community especially around the Northern Virginia area. I come down from NY frequently to get away and I want to start in this market because I know it more than NY. NY can be intimidating. 

Thanks for your time everyone.

-Jon Kamantigue-

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