All Forum Posts by: Marc Rice

Traditionally most seller financing only involves a short period of 3-7yrs of seller financing at white point a balloon payment would occur which forces the buyer to refinance before the balloon is due, essentially guaranteeing the seller wont be stuck holding a mortgage for 30yrs. 

In your example, it sounds like the family member trusts you will get it refinanced in a reasonable time so they are not putting a balloon payment in the timeline. Thats GREAT! Those terms are fantastic too as most Fannie 30yr fixeds are about 4% interest rate with less than 20% down. I would feel comfortable going forward with the owner financing terms if the purchase price is also fair.

As always, I'd recommend a lawyer to review the terms/contract because I am not a lawyer and either are you. Good luck!

I think that was a great solution. It bought you time, saved you the headache of having to deal with an eviction, and kept everyone happy. Best thing is communication to solve problems with tenants.

Understand how the finances work with principal/interest payments, balloon payment terms, how interest rate affects monthly payments, and timeline for your ability to refinance. 

You don't want to be stuck with a balloon payment coming due without the option to refinance.

@Josh Smith

Any way to approach it from a “second home purchase 10% down angle”? Not sure if underwriting varies for that?

@Cole Urbanovitch

Seems good, you may pay a higher interest rate under 700. FHA I think is 620+

@Roberto Candelario

I’d recommend following the 1% rule when analyzing a property. You’ll want at least 1% of purchase price to be your gross monthly rent, ex. $200k house should rent for at least $2000/mo gross.

I’d recommend a small multi-family 2-4 unit to start out in a B-/C+ neighborhood. Many good ones mentioned above

@Joseph Cameron

Partner with someone on a low money down owner occupied multi family 2-4 unit. Eliminate your biggest expense (rent) and start to build equity with your partner

@Alex Ray

@Alex Ray

Solid B, B-/C+ neighborhoods are where I personally invest and feel comfortable for the long term.

The neighborhoods listed above are spot on, I’d also consider Reeb-Hosack, King Lincoln, Berwick, Old North/Clintonville.

@Brad Walker

Buy low, sell high.

I’d recommend sticking with one lead gen strategy and mastering it before moving on to another one. Consistency will get you momentum.

@Mary M.

Yeah also use Zillow they’re good