All Forum Posts by: Kim Rock

I am both an investor and a real estate agent - if you need help finding an agent in your area who understands investors let me know.   I have access to a nationwide group of agents within my company who do what I do.   Don't pick at random, shoot me a PM I am happy to help!

I would not be able to put 10% down.. Most likely 5%

They appear to own it free and clear - the last mortgage was in 1994 for 68k and I don't see any refi's since then.

Whenever I see a good investment property I ask if the seller will hold the note.. Most times the answer is no, but a recent agent just told me to propose a plan to him and he'd see if his client would have interest.

What would you propose as seller-financing terms on this property? Sale price 360k, taxes 5k, 2 units - each rented out currently in 1 year leases for $1400.

Property is in a VERY nice area and both rents and value will consistantly go up without any issue.

I know I'd never get approved for a loan right now with my DTI, so seller financing is probably my only option. I am specifically looking for how many years/interest rate/etc you would propose for this purchase. Thanks!

Here is the info Ive got on their current mortgage pulled from public records:

Mort Rec Date 12/31/1998 LenderName Union Federal Sav Bk Of Indianapolis
Mort Amt $73,862 Due Date 1/1/2029
Remarks: FHA

Joel - do you have an example of a servicer that will do this? Do I have any risk involved in this in that case, other than if the bank finds out and calls the note to be due?

Those were my thoughts as well.. because the mortgage is a lein, and even if the transfer title to me - if he stops paying it, or they call it, they can still foreclose on it and I am screwed.. I think I'll skip this one and look for a property that a seller owns outright.

Well, I was all proud of myself that I had gotten a seller to accept seller financing on a property I felt would be a good long term investment..... now I come to find out he has a mortgage on the property, and wants to just accept my payments to him and use them to pay the mortgage. Doesn't his mortgage have a due on sale clause? What happens if we transfer title to me, I own the property, he still has his old mortgage, and the bank finds out? What are my risks here? I am not sure this is turning out the way I wanted.

Yes Bryan, I just said in the post you replied to that I am looking into properties that the seller is willing to hold the note on going forward :)

Nope, I have decided to skip the house I was interested in and keep looking/bugging owners for seller financing. That's really the only solution to my problem right now - I am not adding a partner/cosigner at this time.

I own a vacation rental in the Pocono Mountains in PA and it's by far my favorite of my rental properties.

To answer your questions:

1. Have you been able to create an automated system for booking?

I could if I wanted to - but I do not. I like to be able to speak to potential guests and be a bit pickier about who stays in the home. There are automated services out there however. I just choose not to use them and it's worked out well for me - I have avoided some potential disasterous tenants.

2. Do you use a management company and if so what do they charge?

Nope I do everything myself. I am not local, either. It's actually not hard to do it yourself - as long as you find a great cleaner and maintenance/handyman - you're set. My cleaners do way more than just clean - they are my eyes are ears for the home.

3. Do you advertise aside form VRBO.com, Homeaway.com & vacationrentals.com?

Just craigslist and a few other free sites including my own site. The bulk of my rentals come from homeaway.com however.