All Forum Posts by: Landon Bleau

What exactly do you mean by owner financed condos?  Owners willing to seller finance their condos?  Owners who bought a condo with financing in their personal name?  

I would just talk to a commercial lender about doing them all in 1 loan.  It is possible to do them all conventionally though, will just have to pay 3-5 sets of closing costs by doing it that way though.  

I can understand asbestos and lead paint being a concern of yours, but as long as they're in good shape and not peeling or cracking, it really isn't a problem.  Are there visible signs of cracking a peeling lead paint?  Are there tiles that are coming up and breaking apart?  

What's your vacancy rate on a MTR vs LTR?  Have been thinking about doing MTR but just don't want 20%+ vacancy.  

Backing out all utilities/wifi and adding in extra costs such as furniture, etc that are specific to MTR, what would you say your CoC return is vs standard LTR?

I think your best bet is to just call a bunch of attorneys and see who is knowledgeable on seller financing.  That's what I did in my area and found great success with it.  

Think syndication would be your best bet.  Or you could find a partner with little capital who is willing to do all the work, tons of us out there that lack the money but have the knowledge/hustle.  

Appreciation would factor into your ROI (return on investment) but not your ROE (return on equity), your ROI is likely very high and will continue climbing as the home appreciates more, but your ROE will lack as the cashflow (NOI) isn't going up very much, unless you expect a large bump in rents soon.

Could you buy another home that both appreciates and cashflows? Potentially a short term rental in a high demand area? Say you were able to get $150K in equity from a HELOC, that could get you a $1M+ property with a 2nd home loan.

Is the money you're going to make off investing the $98K more than the difference in payment?  I would definitely think so as long as you're able to find a good deal/deals, so I would say go for it. 

I would definitely talk to more lenders about that.  That might be that specific lender's requirements, but from what I know that's not all lenders requirements.  

 Your return on equity is 1.6% ($400*12=$4,800, $4,800/$300,000=1.6%) which is pretty low.  If you were to take that equity and deploy it across multiple properties I'm nearly positive you'd drastically be able to increase your cashflow.

In terms of the HELOC, one of the nice things is you don't have to pay interest on the money unless you're using it. So you not knowing you're going to put the money next is OK, you don't have to pay anything unless you're using the money.