All Forum Posts by: Matt Lindstrom

Welcome Shaun,

There is a ton of good info here on BP.  I am also from and still live in Waukesha.  I cannot speak from experience with student loans, but as Nic said above, don't let that discourage you from moving forward with real estate.  Depending on the terms of the student loans you may be able to get a much better return on your money by investing in the right property rather than paying down the student loans.  Another thing, I can't see having student loan automatically disqualifying you for a mortgage as long as you're debt to income ratio and credit are in-line. 

No, unfortunately the numbers didn't work out in the end.  

Welcome to BP George Frick,

As recommended earlier, the Keyword alerts are a great tool.  The podcasts are also an excellent resource.

I understand that the assessed value is almost useless when pricing rental property, or any property really.

The seller has a mortgage on the property, I don't know what the balance is.  I do know that a lot of people talk about the risk involved with the due on sale clause.  Is there a better way to structure seller financing with an existing mortgage involved, or even a better way that might protect the buyer more than a land contract? 

The 40k down payment is always negotiable, even to the point of zero down if you can show the upside to be much more beneficial in the long run.

Arnie, you described the property to the T, as "traditional".  The more I research the area I can see that the value would be in the low to mid 200s.  Thanks for your input and good luck with your new property.

Thanks Kenneth,

I did talk a little about terms today.  He mentioned a land contract with 40k down and a 10 year balloon.  I know he still has a mortgage, not sure of the balance but I know the payment is around $1600/month.  I need to find out if that includes taxes.  I do remember that terms are almost more important then price for cash flow.  I think that was in rich dad poor dad.

It also has a coin operated washer and dryer in the basement that is about $70 per month income.  

I talked to the seller today and it sounds like a very nice property.  Updated electrical, furnaces, water heaters, new water efficient toilets and new carpet.  Seperate utilities paid by each tenant.  The roof is 20 years old, so that will need attention sooner than later.  He is willing split the cost of the roof.  He said in the nearly 10 years of ownership he has only had 2 vacant months and that was mainly due to renovating a unit.  It is on a busy road with cheap rent so it is possible.  I understand that I need to confirm everything on my own.  His reason for selling is retiring and spending more time with family.  He has always self managed the property.  Price he is looking for is 230k,  1 unit has been rented for 15 years,  another for 5 years, another for 2 years, and the last for a couple months.  No pets, month to month leases. I'm sure I'm missing something but that's my update.

Paul,,

This is something that just came to my attention today, so I have not had any estimates yet.  I would be mortgaging the property.

Mark,

I need to find out more about his motivation and vacancy.  The seller financing would be helpful to me since I am self-employed and don't show a lot of income.

Thanks Sam,

I plan on doing a good amount of research before making any offer.  I do understand the assessed value can be way off, and thanks for offering me a "steal" on a few of your properties :)

Btw the building was built in 1951.