All Forum Posts by: Kendric Buford

Ah great, thank you for the clarity. I really appreciate it

I've been trying to wrap my head around assumable mortgages, but I'm not sure I get it fully. Can someone tell me if this scenario is accurate, or explain it like I'm a child?
Scenario: (using round numbers so I can follow better)
Seller is trying to sell their house for $300,000 but can't. Their Original Purchase Price was $250,000 at 3%. They currently have $50,000 in equity in the property. I offer to buy it by assuming their mortgage. Does that mean I'd take over the remaining loan of $200,000 at 3%, then I'd have to pay the seller $50,000 for their current equity, and an additional $50,000 to cover the difference from the initial amount they wanted to sell for ($300,000)? - Also, I presume this is where my cash and/or a second mortgage would come in, so I can pay the seller.

**To keep things as simple as possible, I didn't mention any closing costs or commission to an agent for this scenario.  

So at the end of all this, if I'm understanding correctly, the Seller would walk away with the $100,000 that they would have from a normal sale, but I get a 3% mortgage rate and the property?

First time posting here, so please bare with me. I'm in a unique position after an unfortunate event, but I'm determined to make the best of it! Currently I have a single family property that I'm renting out long term, which is cash flowing well. I also have a second single family that I'm house hacking. I'm about to pay off my house hack and looking to expand. I like the idea of long term rentals with a property manager; the lower headaches are worth the slight drop in cash flow. I was considering going the single family route and getting 1-2 more properties here, but through various sources, a small 4 unit multi-family looks like a promising way to scale up. I am a little concerned with the leverage for obtaining a multi-family. My secondary worry is that a small multi-family is going to be less desirable for would-be tenants. If anyone has some advice on the subject I'd appreciate it.